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Citronella Oil. With the exception of a few weeks, this article has 

 been able, during the past six months, to maintain the prices at which it 

 stood when our October Report went to press, that is to say from about 1/- 

 to 1/1 cif, with a firm tendency. The reason of this firmness lies probably 

 in part in the decline of the exports as compared with those of the previous 

 year, and in part also in the systematic withholding from the market of 

 the arrivals by the native traders in Matara. 



The exports from Ceylon were as follows: — 



1524275 lbs. in the year 1911, 

 1747934 „ „ „ „ 1910, 

 1512084 „ „ „ „ 1909, 

 1276965 „ „ „ „ 1908. 



The fact that in 1911, as compared with 1910, there was a decline 

 in the shipments of about 13% does not necessarily mean that we are 

 faced with a serious falling-off in the supplies or in the output, for, as 

 the figures quoted above show, the shipments in 1911 not only equalled 

 those of 1909, but they even exceeded those of 1908 by about 20%, in 

 spite of the fact that throughout the year 1911 the cry of short supplies 

 was heard. 



It is true, however, that the figures for the present year, so far as 

 they are known, again show a considerable decline, for according to the 

 data at hand the shipments up to 12 th February 1912 amounted only to 



40223 lbs. as compared with 

 173788 lbs. in the corresponding period of last year. 



We are unable to judge in how far this decline is ascribable to the 

 policy of reserve adopted by the native traders, but there are good reasons 

 for assuming that it may be attributed in a large measure to speculation. 

 Whether an upward tendency thus artificially produced can be maintained 

 for any length of time the future must show. 



Regular supplies of Java citronella oil have reached us from the 

 producing country and no alterations in price of any kind are to be 

 recorded during the period under review. The sale of this oil to soap- 

 makers has dragged greatly during the last few months; on the other 

 hand, considerable quantities have been consumed by our Department of 

 Artificial Odoriferous Substances, as the oil forms the basis of numerous 

 preparations. There has consequently been no heavy accumulation of 

 stock at our works. We are informed that at a recent fire in Amster- 

 dam 5000 kilos Java citronella oil, which had just been landed, and were 

 stored in a shed, have been burnt. 



