TEA AUCTIONS.

Otago Daily Times, Issue 26410, 14 March 1947, Page 9

TEA AUCTIONS.

RETURN TO COMPETITIVE BUYING CONTROL STILL NECESSARY P.A. WELLINGTON, Mar. 13. The effect oi' the recent change in the system of selling lea in Ceylon and India, under which all tea is now sold at open auction instead of at fixed prices, was considered at a conference of representatives of the New Zealand Wholesale Tea Packers’ Federation and the New Zealand Tea Brokers’ Association with the Food Controller, Mr A. Costelloe, in attendance. - In a statement issued after the conference, Mr E. R. Toop, president of the former body, said the Food Conhad amplified the statement made recently by the Minister of Supply, Mr Sullivan, and, after full consideration of all details, the conference had concurred in the efforts being made to maintain the supplies and quality to which New Zealand is .accustomed. , The statement that free competitive conditions would be restored at the earliest possible date was welcomed, but it was agreed that some measure of control was still essential, particularly for the maintenance of a reasonable price to the public. Mr Toop said that world supplies of tea were considerably below the demand, and the present shortage was likely do exist for a considerable time. The destruction and lack of maintenance during the war of the Java and Sumatra plantations, which in the past had supplied a substantial portion of the world’s crop, would take two years to repair. These conditions, combined with the growing world demand, had created a very firm price in auctions already held in Colombo and Calcutta. Increased prices, to the public could only be avoided through the Govern- - ment policy of stabilisation and subsidy. New Zealand had imported sufficient tea under the Empire tea scheme to maintain the ration during the war period, Mr Toop added, and full cooperation between the Food Controller and the trade had rfiade it possible to supply the public with tea of probably nigher quality than other countries, and with no increase in price. All connected with the tea trade fully supported the Government in sending Mr L. M. Wright to Ceylon and India, as it was only by direct contact that regular shipments of both quantity and quality could be maintained.