LIMITED TEA OUTPUT.

Evening Post, Volume CVIII, Issue 152, 24 December 1929, Page 12

LIMITED TEA OUTPUT.

Restriction of outputs of tin, rubber,! and other essential commodities appear to be in fashion. . Information has been received by cablegram that the tea planters of the Dutch East Indies have agreed to join those of India and Ceylon in limiting production of tea. This is the first time the Dutch have agreed to any limitation of output. They stood out of the British scheme for restriction of rubber. Indian planters were prepared to limit production by 15 per cent, until the prices recovered to at least an average of Is 5d a lb. Ceylon, growers suggested 7% per cent, reduction as their basis, while it ia understood that the output in Java was to be reduced by 10 per cent. On these figures the production of tea other than of China and Japan next year will be more than 70,000,0001b less. This should have the effect of checking any further decline in prices, and it may lead to some recovery. Stocks of tea are exceptionally heavy, especially in London, and it will be some months before the market will be affected even i£ the restriction plan be put into operation. Prices recently paid for tea have been said to be below cost of production.