PRICE OF TEA.

Star (Christchurch), Issue 16938, 12 January 1923, Page 6

PRICE OF TEA.

A FIRMING TENDENCY. Tn the past few weeks there have been some rather sensational reports concerning the higher prices paid for tea, in the chief markets. New Zealand retailers generally have considered that even though prices had experienced a sudden jump the higher rate would not he improved, and they have held off from buying at the. increased rate in the hope of getting cheaper stocks. Yet the reports of the weekly sales from Colombo. Calcutta and Ceylon have not justified this anticipation ; on the- con trary, prices have maintained an upward tendency. The fact that New Zealand buyers have been holding off for so long in expectation of a fall has resulted in such a depletion of stock® generally that there is now no recourse but to buy at the appreciated rate. Within the past week or so there has been an increase of about 6d per lb on the higher quality teas, and there appears to be little doubt that within the next few days further increases will have to be passed on to the consuming public. During the Christmas and New Year holidays there were no tea sales, and retailers and merchants had no idea as to what condition the markets would he in when sales were resumed. But the first sale this year was held in Calcutta yesterday. The report stated that the market was strong, though irregular. All the first grades maintained earlier values, and in some cases made a considerable advance on late rates. It is fairly certain, therefore, that the consumer will have to pay a. higher price for tea at no distant date. In making inquiries this morning a reporter was told that the general state of the tea market had been upset a little by the greater amount of teadrinking among Americans. "YY hen the American troops were at the front they became practically initiated into the habit of drinking tea frequently—a custom not in vogue in the United States. When they returned home they carried the habit with them, and their example was adopted largely by their relatives and friends.