INCREASED PRICES LIKELY

Taranaki Daily News, 24 January 1933, Page 6

INCREASED PRICES LIKELY

EFFECT OF EXCHANGE RATE

GROCERIES NOT YET AFFECTED.

.QUESTION OF FERTILISER COSTS.

Indication of the likely effects of the increase in the exchange rate on groceries and fertilisers were given the Daily News yesterday by New Plymouth business men. ■ , No increase in the price of groceries had been made up to the- present, stated a New Plymouth merchant. It was inevitable, however, that such increase would come. At present every order from retailers was dealt with on its merits but there was a certain amount of restriction on trading, as speculation would not be catered for. In a sense, that meant the goods imported under the old exchange rate were being rationed to the retailers seeking them although every case was treated on individual merits.'' . . .. The wholesale price of butter on the local .market remains at lOd and the retail at lid, no increase having yet come into effect If .the market firms in Britain there is no doubt the New Zealand price will go up. At Hamilton the price of butter in the local retail market has been increased by Id per lb in sympathy with the premium, for export to the London market. The new rates are Is Id for finest and first grade and Is for second grade. The respective .wholesale prices there are lid and lOd. At Dunedin the price of butter has risen a penny. ■ _ ’ ’ .' z '" It is understood that imported fertilisers such as nitrate of soda, sulphate of soda and potash salts will increase in price. It is not contemplated that there will be an increase in the immediate future in superphosphate 44-46 and basic super manufactured in the Dominion—at least there will not be a rite until there • has been an opportunity of considering the position. The sulphur used in the manufacture of superphosphate is imported. The other ingredients of the local fertiliser, Nauru and Ocean Island rock, are purchased from the British Phosphate Commission and there is an arrangement whereby payment is made in N e w Zealand through the Government.

It has been stated that with the increased price ruling for imported seed, it is a matter for speculation whether the New Zealand grown seed will not be correspondingly raised in price. There has been an increase of 15 per cent, in the price of all hardware lines. Farm implements and machinery will all be thus increased in price, the American as well as the English goods. The opinion is held by some that .American manufacturers may come to some arrangement to help the sale of their machinery, but there is no definite information, on this yet. * .