QUOTAS ON TEA

Taranaki Daily News, 24 November 1934, Page 12

QUOTAS ON TEA

STABILISING THE MARKET. VISITOR DISCUSSES TRADE. ‘Tn April next, Ceylon will have been under a tea quota system for two years,” said Mr. C. R. Brocklehurst, tea-taster for Mackwoods, Ltd., Ceylon. “A restriction on the export of tea was introduced to try to stabilise the market,” he explained. “Prices fluctuated to such an extent that India, Ceylon and Java cooperated and, forming a tea committee which meets in London, adopted the quota system. In November this committee meets and allots the quotas to the different countries. Tea prices fell till September, when the market firmed. This firming was in anticipation of the November allotments.

“In the first year the committee representing the three countries decided to cut down exports by 15 per cent. This caused the prices to rise to such an extent that a reduction to per cent, was felt justifiable. During this year prices again slumped and it is anticipated that the tea committee will revert to the 15 per cent, reduction in export.” Mr. Brocklehurst explained. that the quota was based on the average production of stations over the three years before the introduction of the system. The stations were given coupons permitting .them to export so many pounds of tea. “Under this system the coupons can be sold,” he said. “The small planters can secure coupons which can be sold to the big stations or to brokers for a considerable price. “The stations that buy the coupons automatically hold a permit to export more tea according to the number of coupons bought.” TRADE WITH NEW ZEALAND. Mr. Brocklehurst said that Ceylon was by far the most popular in New Zealand. He could not give accurate figures as to the annual import of Ceylon tea, but he estimated that it must be a huge amount. All the tea came through Australia. He wondered that there was not more reciprocal trade with New Zealand. “Of course there is the difficulty of shipping,” he said. “There is no direct line with New Zealand, and trans-ship-ping is so expensive that it prohibits Nevt Zealand from competing with Australia. Some day it may be practical to run a ship direct to New Zealand, say, three times a year. Then New Zealand might be able to capture the meat market of Ceylon from Australia.” Mr. Brocklehurst said that Ceylon was very keen on racing. Practically every Saturday a race meeting was held at Colombo. The climax of the racing season was the Governor’s Cup, which was won last year by a New Zealand horse, Compris, owned by Mr. G. L. Lyon, who had also bought a half-brother of Phar Lap. Ceylon was clamouring for polo ponies. As neither the P. and O. nor the Orient lines would carry horses it was an expensive matter to import ponies from Australia. The stock had to be sent by Singapore, Madras or Bombay. Polo ponies averaged £75. in Ceylon at the present time. Mr. Brocklehurst said he had often heard New Zealanders spoken of as more British than the English. During his present tour he had learnt to appreciate fully the truth of tha,t.