A DROP IN TEA.

Star (Christchurch), Issue 16260, 29 October 1920, Page 7

A DROP IN TEA.

MERCHANTS OVERSTOCKED. Ono brand of packet tea Bropp%d by sixpence on the Christchurch market to-day. The retail price is now 3s a pound, instead of 3s fid. It is hinted in some quarters that other packet brands will follow suit to tho extent of at least threepence. Loose teas may also be affected. Overstocking is one of the chief causes of the decrease. “There is an enormous quantity of tea In the Dominion,” said one merchant. “I’ll guarantee that every grocer of any standing in Christchurch has at least ono ton ol loose tea. Storekeepers ha Vo been retailing supplies at 3s loose pall along, and that competition has been felt by tho packet proprietary people trying to sell at 3s fid. The lirst reduction has been made by a firm that probably desires to retain tho market. When tho decrease becomes general, it should not average more than 4d a pound.” “ There will ho a lot of money lost over tho tea price reduction,” said a grocer. “ Tho market is always a hard ono to sum up because of the various factors operating. We bought present stocks at tho highest rates, and we shall havo to soli tho balance at a loss- loose tea is certain to drop sooner or later. 1 know of ono South Island importing nrm that has already written £IO.OOO oft tea.,” the majority of tea merchants were not prepared to say what would happen within th« next week or two. “The rate of exchange between India and Ur . c , ~ has a great deal to do wun it,' said one representative of the trade. I cannot tell tho extent of any probable reduction.”