TEA PRICES

Otago Daily Times, Issue 23953, 31 October 1939, Page 8

TEA PRICES

INCREASE PROBABLE : i ' v • '[ j IMPORTERS’ DIFFICULTIES j QUESTION FOR MINISTER ■ | ■ (Special to Daily Times) : WELLINGTON, Oct, 30Tea is likely to be increased in price by at least 8d per lb, according to information received in Wellington today from merchants. They state that they are definitely short of tea. During August, it was stated, merchants could not order outside New Zealand. Though they wanted to order, orders were not accepted because the sellers did not knoyy when they would get payment. Thfere was no question of the merchants holding tea in anticipation of a rise. They did not have the stocks. The price m Colombo had risen by 8d to 9d per lb, and import licences were being issued only for the same value as !the last period. . The result was that less could be bought, and there would [probably be a shortage of from 3,000,000 to 4,000,000 pounds. Position During Last War Referring to a statement by the Minister of Industries and Supply (Mr D. G. Sullivan) that there were sufficient supplies, merchants asked-where these were. They had not got Some of the tea purchased since the rise overseas was only a week dr so away from New Zealand. During; the Great War, tea had, according to ijieir recollection. risen by from Is 9d ; and 2s per lb to 4s retail On this basis there was still a long way to go between the rise of 8d to 9d now probable and that which resulted during the Great War. Proprietary packet teas, retailing round 3s, would probably advance to 3s 8d per lb. Whether or not immediately was not yet known. Tea already sold, and possibly drunk, would pot be fully paid for till June next, and the merchants had to meet interest charges. There .were also war risk charges, increased exchange on the rising price and increased freight. All- these costs could not be borne by the merchants, and, as was always the case, the consumer would have to pay. I . . One merchant, quoted an invoice in respect of one shipment. The increased war risk, freight and exchange charges on this unvoice represented nearly £36 more, irrespective of the rise in price in Colombo than would have beep the case before the position cheated by the war and the dearth of stealing funds. Evidence of Shortage The Minister’s statement was difficult to understand, it was stated. If there was no shortage, why were teapackers selling only in single-case lots where formerly they would sell in 20case orders? He would j but heed to go round the to find the correct position. This shortage had not been unforeseen, and orders had been placed on the assurance ithat a licence would be forthcoming -Now with tea thus ordered on the way. the Customs Department stated that no licence could be granted for i)t. and so the position would probably be that the value of this tea wouljj. be deducted from the import authority for the nextperiod. :