JUTE GOODS

Otago Daily Times, Issue 26558, 5 September 1947, Page 4

JUTE GOODS

SUBSIDY LIFTED y PROBLEM FOR FARMERS SACK PRICES DOUBLED Daily Times Special Service CHRISTCHURCH. Sept. 4. The Government subsidy on all jute goods has now been lifted. The effect of this will be that the price of most lines of sacks used by farmers will be slightly more than doubled. There will also be a considerable rfce in the price of wool packs. Under the system of subsidies, new sacks were sold to farmers by grain and produce merchants at Is 6d each and bought back (when filled with produce) at Is 4d, 2d being charged for depreciation. When they market their next season’s produce farmers will pay 3s l£d a sack and be credited with 2s Bd. In effect, farmers will pay s£d for the use of each sack against the old charge of 2d. Potato Growers Growers of potatoes are differently placed, and in their case the lifting of the subsidy will be of far more serious import. Practically all lines of produce except potatoes are sold by the farmer on the basis of “ sacks extra." Potatoes, however, are sold “ sacks in,” and this means that the marketing expenses of potatoes, which hitherto have included, say, 21s for sacks alone, will now cost the farmer double this figure. Merchants in close touch with the situation say that representations will in due course be made by them to the Government on .behalf of the potato growers. It is not yet known whether producers are to receive any compensating price increments for their produce to offset the additional cost of sacks used for bagging peas, oats, barley and other lines. An exception exists in the case of wheat, the price of which is to rise in sympathy. Extra Costs Covered Making the announcement last year about the price of wheat for the ensuing two seasons, the Government definitely stated that the price per bushel would be 7s 4d, plus any extra proved costs. The growers of next season’s wheat are, therefore, entitled to an increment to cover the extra costs, not only of sacks, but of manures and any other items which enter into costs of production. One effect of the lifting of the subsidy is that, as from next Monday, the old method of selling flour, bran and pollard, sacks included and weighed in, will be abolished, and the new method, by which sacks will be charged at 2s 8d each, will come into force. Under the old system, a 1601 b bag of flour cohtained 157|1b net of flour. Under the new system sacks of flour, bran and pollard will all be filled to a net weight of 1601 b, and the sack will not be weighed in as before. , Farmers will have to pay considerably more for their wool packs next season. The old price was 7s a bale ex ship at Lyttelton. This has now been tentatively raised to 11s 2d ex ship, and merchants expect that this figure will be increased before it is finally approved.