fidible Products. 



sio 



[December, 1910. 



Assam and Darjeeling have catalogued 

 supplies of about average standard. 



Although a shortage in supplies during 

 the earlier part of the season undoubted- 

 ly warranted the advance in values 

 which obtained after the first sale or 

 two had been dispensed with, the more 

 favourable turn of events in the districts 

 from September onwards might have 

 been expected to result in a general 

 shrinkage of prices, record returns being 

 forwarded from many estates, thus en- 

 suring a total crop which would seem to 

 be in excess of trade requirements. The 

 result however was only a temporary 

 set-back in the value of "price" tea which 

 quickly regained its former basis after a 

 sale or two had elapsed, and although 

 market quotations fluctuated slightly 

 during the next month or so, it soon 

 became evident that nothing worse than 

 this would eventuate. 



The Strengthening of the Position. 



Many influences were at work which 

 combined to strengthen a situation which 

 has since fuither improved until produ- 

 cers find themselves to-day in the happy 

 position of being only just about able to 

 keep pace with the world's consumption. 

 The chief factors contributing towards 

 this end might be summed up as follows : 

 —(1) A decided increase in the consump- 

 tion of tea at home, the quantity taken 

 per head of the population amounting to 

 6-42 lbs. against 6-18 lbs. in 1908. (2) A 

 freer off-take ou account of foreign 

 markets out of the Calcutta sales, to- 

 gether with (3) A corresponding develop- 

 ment in the business with outside in- 

 terests through the London auctions. 

 (4) Smaller imports of China tea, about 4 

 millions less having passed the Home 

 Customs than in the previous year, while 

 some 2 millions more were re-exported, 

 The generally higher standard of the 

 Indian crop which was maintained 

 throughout the season doubtless also 

 affected the position in some degree. 



Why Consumption has Increased. 



Under the first heading the general 

 consensus of opinion seems to favour 

 the idea that the movement of the late 

 government in introducing Old Age 

 Pensions has been largely responsible for 

 a more widespread use of the " cup that 

 cheers," Simultaneously a falling off in 

 the consumption of spirituous liquors is 

 noticeable, and those who have studied 

 the subject closely suggest that this is 

 indicative of more temperate habits 

 among the masses, which is all in favour 

 of tea. AI30 the financial embarassment 

 among the labouring classes iu the pre- 

 vious year, with so large a percentage of 



unemployed, has in some measure been 

 overcome, and the situation generally 

 has presented a rather more encouraging 

 aspect. 



The increased business in Mincing Lane 

 foreign demands has been brought about 

 chiefly through free buying for the 

 Russian market. The reason assigned 

 by some for this increase, namely, the 

 small remission in the Russian import 

 tariff on teas admitted into that country 

 via the European Frontier, is erroneous, 

 and the Moscow houses established in 

 Calcutta will confirm this. The increased 

 buying can be attributed rather to a 

 growing appreciation of Indian Tea 

 among Russian shippers who seem to 

 have paid a good deal more attention 

 to style and "make" than formerly. 

 Although cup quality is undoubtedly 

 the first consideration, when this can 

 be combined with appearance of leaf as 

 is generally the case with Indian teas, the 

 latter will natuially be taken in pre- 

 ference to Ceylon. The set-back in ship- 

 ments from Colombo to Russia has con- 

 sequently had to be supplemented by a 

 substantial expansion in Indian exports 

 through London, for it would have been 

 impossible for Russian shippers to enlarge 

 on their buying in the Calcutta sales 

 without raising value to a prohibitive 

 basis, aud for want of supplies locally 

 they have been obliged to operate with 

 more freedom on the home side. 



Anticipations of an enhanced import 

 duty in the States influenced heavy ship- 

 ments to the American markets in the 

 earlier months of the year, speculative 

 interests being chiefly responsible. The 

 bulk of this consisted of low China 

 grades which cleared the London bonded 

 warehouses of a quantity of uudesirable 

 tea, a,nd consequently strengthened the 

 position of common Indian growths. 



Regarding the development in outside 

 trade through Calcutta, the chief cause 

 influencing increased exports from 

 London has been also responsible in this 

 case, and nearly five million pounds more 

 fell to the demands of Russian shipping 

 houses. 



Under the fourth heading it can only 

 be assumed that the speculative element 

 who were &o badly hit in 1907 by flooding 

 the London market with a quantity of 

 rubbishy Chiua teas, when Indian and 

 Ceylon low grades were selling on a7£d. 

 basis, have been somewhat shy of repeat- 

 ing their experiment; also the enquiry 

 for poor China grades is on the decline, 

 and imports from the Far East have 

 consequently shown a set-back. 



Foreign Markets and Calcutta- 

 A review of the industry would be 

 incomplete without a short synopsis of 



