TEA AND RUBBER

Otago Daily Times, Issue 22099, 1 November 1933, Page 4

TEA AND RUBBER

MAIN CEYLON INDUSTRIES SIGNS OF REVIVING. I A New Zealander who has been a tea and rubber planter in Ukuwella State, Ceylon, for the past 36 years, Mr H. D. Garrick, arrived in Wellington on his first visit to New Zealand for 22 years on the Rangitiki last week. Mr Garrick, in an interview with the Dominion, .spoke of the- difficulties with which the two main industries of Ceylon have been beset in the past. These had now shown signs of lessening owing to the firmer control which has recently taken place in tea and rubber production and marketing and also the generally brighter signs in world trade. Speaking of the rubber market, he said that it had been depressed for some years past, and rubber had been practically selling at a loss in every estate in the island. When he left Ceylon, in the end of May, however, the prices, in view of the Americaan dollar situation, had shown signs of rising. Talk of Dutch co-opera-tion as regards restriction of production had further tended to bring about a firmer state of market conditions. That did not imply that there was in any way a sound condition in the industry, but at least it tended to give more confidence to the estate proprietors that better times were in sight. The rubber prices that had been ruling at, about 23d to 3d a lb—a price that was hardly up to the cost of productionhad now risen to about 4d a lb. This had tended to induce many of the estates that had been closeed down for the past year or so to resume production; That would, of course, lead to a large increase in rubber production. Unless the talk of restriction led to any definite decision to reduce production the conditions in the industry could not possibly be viewed with an expectation of any solid return to, prosperity. The tea industry during the past two years had been handicapped by serious over-production. With the exception of a few up-country estates which had produced very high grades of tea, very few of the estates in the island had been worked at a profit. But again prices were now showing a strong tendency to rise, due to the imposition of a restriction on production in all the large tea producing countries, so that the prospect for this industry was very considerably improved. Shareholders should look forward with confidence to 1934. Prices had risen too late in 1933 to make any definite difference in the conditions of the present year.

As in most other countries of the world, Ceylon had been passing through a serious crisis, Mr Garrick continued. But, with, rigid economy exercised in all departments, a general definite improvement was inclined to be shown. It was only by the continuance of this policy that one would be able to take an optimistic view of the situation there.

Mr Garrick, who was born in Christchurch, intends returning to Ceylon in about three weeks’ time.