WHEAT PRICE FIXED

Timaru Herald, Volume CXLIII, Issue 20862, 19 October 1937, Page 6

WHEAT PRICE FIXED

RISE ON LAST YEAR 5/9 F. 0.8. TUSCAN CABINET’S DECISION (From Our Parliamentary Reporter) WELLINGTON, October 18. The price at which the Government will purchase wheat grown to New Zealand for the 1937-38 harvest was announced to-night by the Minister of Industries and Commerce (Hon. D. G. Sullivan). The figure decided on by the Government is 5/9 a bushel, f.o.b. for Tuscan on a March basis. In announcing the Government’s decision, the Minister said that the price had been fixed only after a thorough investigation into the costs of production and farming conditions to the wheatgrowtog districts. GROWERS EXPECTED 6/EFFECT OF INCREASED COSTS "Although the price is better than last season’s, which was 5/3 f.o.b. on the March Tuscan basis, farmers were expecting a rise, and will not be satisfied until they get 6/-,’’ was the comment of a wheatgrower when acquainted with the Minister’s announcement by a reporter of “The Timaru Herald” last night. Costs had increased out of all proportion, continued the grower, who said that the new price, equivalent to about 5/6 a bushel on trucks, was still not sufficiently attractive to encourage former wheat men to transfer their attentions from more profitable primary production. Farmers had been fighting for 6/- a bushel and would not be satisfied until they received 6/3 f.0.b., which would be the equivalent of 6/- on trucks, said another grower. Referring to the increased production costs, he said that cartage charges were out of all proportion to what they used to be as a result of the efforts of the Government to fix a scale. Another likely imposition was the “Chapman” sack, which was smaller than the bag at present in commission, and would require more handling. While the increased price would be welcome he thought that the Cabinet might have disregarded the strong North Island influence and given the grower a price which would infuse the key industry of the Dominion with new life. Wheat Importations Asked for his opinion, a merchant said that if 6/- a bushel were paid to the farmer the Government would have no need to go outside of the Dominion for the thousands of bushels which had been imported this year. While the price of tool and lamb were so payable it was questionable whether 5/9 f.o.b. would have the appeal the Minister no doubt desired it to have. He doubted whether the same consideration had been shown to wheatgrowtog that had been shown to other industries which were of less national importance. Merchants, the reporter was told, had during the season fostered a campaign to have more wheat grown, but they had been told repeatedly that there was only one obstacle to the way of bringing the objective about, and that was the unattractive price. The remedy lay to the hands of the Government itself. The farmers wanted 6/- a bushel. It was pointed out by another grower that while no doubt the usual increments would be paid, the majority of farmers were obliged, owing to increased costs, to stock thresh, and thus not benefit by the increments.