DEARER TEA PROBABLE.

Taranaki Daily News, 17 January 1923, Page 4

DEARER TEA PROBABLE.

NEW ZEALAND STOCKS LOW. MARKET PRICES RISING. A rise in the price of tea to wholesaler, retailer and consumer alike seems probable very shortly. New Zealand stocks of tea are low, buying having been held off in anticipation of merchants being able to renew stocks at a cheaper rate. The cabled report of last week’s tea sales at Calcutta, however, shows that prices have maintained an upward tendency and the market is stated as strong though irregular. All the first grade teas maintained earlier values, and, in some cases, sold at considerable advanced rates. All things considered, it appears certain that the consumer will have to pay more for his tea in the very near future. This opinion was confirmed by a New Plymouth merchant to whom the matter was referred by a Daily News’ representative yesterday. The price of all proprietary teas had risen by fourpence a lb. It was impossible to get cheap teas at all at present, the lowest grade tea costing 2s a lb, c.i.f.e. and duty paid, whilst other grades were correspondingly higher. It was expected prices might ease about May, THE RISE FORECASTED. The present position had been obscured by the fact that no tea sales were held over the Christmas and New Year holidays. Consequently merchants and retailers were “in the dark” as to what the price level would be when the sales resumed. A fair indication of what has actually happened, however, is contained in the November tea market report, received by a New Plymouth firm from their agents in Ceylon. It stated: “It was anticipated v. . that prices might decline about the begin- J | ning of December, but there seems little probability of this materialising as, although Ceylon crops are slightly larger, the statistical position of tea throughout the world is very strong and it is considered by no means impossible that an actual shortage may take place. DEMAND OUTRUNNING SUPPLY. “It it quite true that the output of tea might be increased to some extent,” continues the report, “but this woulf only be possible if coarse plucking were resorted to, and we think the experience of planters in 1920 will be sufficient to deter them •from such a dangerous procedure. If, then, the present system of plucking and manufacture is adhered to, the continuous decline in stocks, which has been steadily proceeding for some time, will prove that at last demand has outrun supply. Demand has been general for all parts of. the world, but the heaviest buying has been Tor the United Kingdom, although American buyers have, shown considerable eagerness to obtain supplies of useful liquoring orange pekoe and pekoes.” A tea-drinking America is a new development, introduced chiefly by the American troops who, when in France, cultivated the #abit and carried it back with them to the United States, where the custom spread. This factor has, to some extent, accounted for the excitement on the tea market and the expressed fear that, demand is outstripping supply. The great bulk of the tea exported, however, still goes to the United Kingdom.