DEARER HONEY

Poverty Bay Herald, Volume LXVI, Issue 19885, 11 March 1939, Page 14

DEARER HONEY

DEMAND EXCEEDS SUPPLY ACTION OF THE BOARD ASTONISHMENT EXPRESSED Despite warnings by the Government that it would not tolerate wholesale merchants advancing their prices for several grocery lines in expectation of a .shortage because of the import restrictions, the honey section of the Internal Marketing Division recently announced an increase of Id a lb. in the price of its standard quality honey. A circular to distributors states that because of the demand for the standard quality being out of proportion to the supply the Marketing Division was compelled to bring about the necessary adjustment ot demand to supply by increasing the price of all packs of this quality. The advance took effect from February 23. Wholesale merchants in Auckland yesterday expressed astonishment at the action by the Marketing Division. It was pointed out that prices must rise following the import restrictions. Several lines already had been advanced, but shortages would not be fully apparent for two or three months. Separate Regulations for State? "The Marketing Division has expressed in exact terms the feelings of the merchants in that as the demand for various lines is out of proportion to the limited supplies which we are able to obtain prices must be adjusted," said one Auckland wholesaler. "However, if we take the same step of increasing prices we have been warned that the Government will take immediate action. It appears that there are separate regulations for the Government and for the individual merchant." Over the past few weeks it has become increasingly evident that the ; cost of living is being steadily raised by higher prices for grocery lines, advises an Auckland correspondent. Some of the lines which are now dearer are cocoa, pickles, preserved ginger, icing sugar, rennet, baking powder, fish and meat paste, canned beef and mutton, strawberry jam and toilet soap. All these lines are manufactured in New Zealand and the list does not include numerous overseas commodities which are now dearer. The increases in overseas grocery lines are partly because of the action of many manufacturers in now charging the full exchange rate. Before the restrictions numerous English firms carried a portion Or the entire rate themselves, but the withdrawal of this allowance has resulted in substantial advances being passed on to the retail trade. The present high rate of the dollar also lias resulted in an increase of about 5 per cent in the price of several merchandise lines from America and Canada.