THE TEA MARKET.

Wanganui Herald, Volume LIII, Issue 16032, 24 January 1920, Page 3

THE TEA MARKET.

SCARCITY OP SUPPLEKS, SOME CONTRIBUTING CAUSES, AUCKLAND, January 22. The problem of keeping the New Zealand market supplied with tea, even at pr®ent high prices, is one that is causing uneasiness amongst those engaged in that trade. The fact was stated yesterday that prices have a decidedly upward tendency, and there are many causes contributing to that end. For one reason importations have not been on so large a scale to the Dominion, which has tended to render the position a little acute. Then the appreciation of the rupee has added to the cost of all Eastern goods. This fact is painfully impressed upon farmers when purchasing woolpacka or corneackg. Even second-hand sacks for chaff are now worth about Is 6d each. The cost of production of tea has also increased, and the rupee is now worth 2s as compared with Is 6|d six months ago. This adds just about 100 per cent, to the cost of tea now being purchased. It is to be feared that importers in New Zealand have been working on short stocks in the hope of the market in the Bast easing. Now that the contrary has occurred stocks bn spot are somewhat short, and those to arrive will bo at higher cost. Last year the output of tea was not up to the average of former years, which has naturally tended to accentuate the general shortage. Another factor to ba considered is the increased consumption of ra the United States since the war. When “over there” the boys learned to like tea, and took the habit home with them, thus creating a greatly increased demand for supplies for the United States.

A glance at the Customs returns shows that in 1918, between July Ist and November 3fitb, the quantity of tea imported into New Zealand was 4,329,2631b., value 3181354. For the same period in 1919 the importations were 4,261,4451b. ans the value 3234,067. This shows that while 67,6141b, less of tea were imported during the period under review last year the cost showed an increase of no less than =£52,213. Since last November the market for tea has advanced! in the East, and the rupee sttli further appreciated, so that stocks now on the way will be at a bigger landed cost.

It may not be generally known that tea is produced on a small scale in Pip. The question naturally arises whether that industry may not bo still further developed, for such high prices toouid prove tempting to planters if labour is forthcoming. Out that is another problem that has to be faced in this very involved question. Prom a general view of the position it needs no prophet to see the “cup that cheers but does not inebriate” is likely to be more of a luxury during too nest few years. The export of tea from Colombo to Australasia for toe year 1919 up to too middle of December was only 17million pounds, as compared with 35 million pounds in 1918. This is attributed to the heavy buying for English markets having caused prices to advance, which checked buying for Australasia.