lofi 
THE  TROPICAL  AGRICULTURIST. 
[Aug.  I,  1896. 
INlJlAiS  AND  CKVLON  TKA. 
iMessiM.  Tlioini)?;on’s  vVniuial  Iteviow, 
oS,  Miiu'iiiff  Liuie,  .lune,  ISflU. 
Tl\c  completion  of  the  year  ending  31st  May 
brings  an  opportunity  for  reviewing  the  character- 
istic features  of  the  season,  and  summing  up  its 
results. 
For  the  kindred  industries  of  India  and  Ceylon, 
the  year  has  been  one  of  expension.  Production 
has  continued  to  increase;  consumption  at  home 
has  been  larger  than  ever  before;  and  trade  with 
other  countries  Las  made  a marked  advance. 
To  growers  the  season  has  brought  substantial, 
though  not  uniform,  remuneration — not,  irrdeed,  to 
the  full  extent  of  last  year  taking  the  actual  sale 
price  of  the  product  as  the  measure  of  success,  but 
so  considerable  in  comparison  with  the  general 
eariring-power  of  capital  as  to  make  this  Indus- 
try conspicuous  by  contrast  with  others,  and  to 
enhance  the  value  of  all  good  properties. 
For  individual  producers,  however,  and  specially 
for  managers  abroad,  interest  centres  upon  the  re- 
sult of  their  own  year’s  work ; and  those  who 
have  been  less  successful  than  others  will  desire  to 
know  the  reason.  To  find  it  we  must  look  back  to 
its  position  os  it  was  a year  ago,  and  trace  the 
unseen  inlluences  affecting  the  market  and  causing 
fluctuations  in  value — in  doing  so  we  may  find  some 
light  thrown  upon  the  future. 
At  that  time  a fine  and  rather  short  crop  had 
been  closed  at  prices,  if  not  inflated,  yet  so  high 
as  to  check  consumption  and  let  in  cheaper  kinds 
from  China  and  Java— leaving  all  holders  of  stock 
with  dear  tea,  and  inconvenienced  by  the  loss 
entailed  by  the  process  of  pushing  it  into  use. 
Then  came  from  abroad  estimates  of  heavy  crops, 
not  indeed  destined  to  bo  realized — as  they  rarely  are 
— birt  put  forth  with  suliicent  authority  to  make  buyers 
anxious.  With  the  arrival  of  the  new  Indian  teas 
came  a foreshadow  cf  a poor  crop,  with  signs  that 
planters,  inflenced  by  high  rates  for  common  tea 
were  plucking  course.  The  heavy  supplies  received 
in  the  Autumn,  and  exaggerated  reports  circulated 
about  shipments,  deepened  impressions  already  formed, 
when  values  in  London  moved  in  the  directions  they 
usually  take  if  crops  are  large  and  not  of  good  quality 
— and  remained  there. 
A few  who  had  foreseen  this  state  of  things,  and 
were  in  a position  to  do  it,  made  the  best  tea 
possible— to  their  great  advantage,  as  it  proved. 
Others  relied  upon  a large  yield  and  a low  cost  : 
they,  as  a rule,  have  done  well ; while  some  who 
took  a middle  course,  and  had  neither  a fine  crop 
nor  a sensational  yield  to  helir  them,  heave  only 
done  moderately. 
Such,  in  broad  outline,  is  the  history  of  a season 
offering  many  points  of  contrast  to  that  of  189-1, 
but  resembling  that  of  1893  in  the  higher  price  of 
fine  tea ; the  lower  price  of  common ; great  and 
growing  consumption,  and  a wider  demand  for  our 
teas  from  abroad. 
That  this  is  a sound  po.sition  for  the  Industry,  as 
a whole,  is  not  open  to  question though  it  'does 
not  suit  all  equally  well;  for  it  will  encourage  the 
production  of  the  good  tea  required  for  home  use, 
and  will  facilitate  trade  with  Asia,  Australia,  and 
America  which  for  the  present  turn  upon  the  teas 
used  there  being  procurable  at  low  rates. 
Writing  a year  ago  about  this  foreign  trade,  upon 
which  so  much  will  depend  a few  years  hence,  we 
said  “ The  development  will  be  seen  when  there  is 
plenty  to  spare  from  the  home  market,  and  quota- 
tions are  not  maintained  at  a level  which  checks 
it” events  have  proved  this  to  he  true;  lower- 
rates  have  been  followed  by  a great  expansion  of 
trade  with  other  market;  which  must  be  taken  as 
a partial  set  off  for  the  disadvantage  of  low  prices 
to  those  who  produce  an  in.ferior  class  of  tea. 
Were  it  rot  for  evidence  of  the  gradually  widen- 
ing world’s  demand  for  Indian  and  Ceylon  tea, 
many  producers and  especially  those  who  are 
contemplating  further  extensions would  need  seri- 
ously to  weigh  these  ([uestions — 1.  lias  the  limit  to 
which  cost  can  be  reduced  been  roarhod  ? 2.  Is 
there  an;/  limit  to  the  possible  fall  in  value  of  com- 
mon tea  V 
'The  influence  of  foreign  orders  upon  the  Calcutta 
and  Colombo  markets  has  been  considerable  ; it  has 
often  made  values  there,  for  the  sorts  taken,  inde- 
pendent prices  ruling  here.  This  has  not  been, 
sufficiently  recognized  by  those  who  send,  or  by 
some  who  execute,  orders  from  London: — for  the  future 
it  will  be  necessary  to  be  more  circumspect,  and 
to  adjust  buying  prices  to  those  current  in  the  place 
of  destination,  remembering  that  if  operations  in 
the  limited  markets  of  India  are  attempted  on  the 
scale  of  China  business  in  olden  days  the  result  will 
be  dis, appointing. 
Another  result  of  orders  from  new  markets  has 
been  to  accentuate  the  preferential  value  of  leafy  as 
compared  with  broken  teas,  for  brokens  are  not 
saleable  abroad,  and  here  fewer  buyers  seem  to 
bid  for  them  every  year,  bringing  their 
value  below  that  of  leafy  tea.  One  reason  for  the  dis- 
favour in  which  small  broken  teas  are  held  is  to  be 
found  in  the  tendency  of  business  to  pass  into  the 
hands  of  those  selling  “ blended  ” tea  who  habitually 
give  the  preference  to  whole  leaf. 
The  development  of  this  branch  of  trade  continues 
to  make  progress,  .and  it  is  an  element  of  importance 
in  the  market — for  the  Blenders  are  teaching  the 
retail  distributor  to  do  without  holding  stock,  and 
their  system  saves  both  themselves  and  their  cus- 
tomers the  loss  on  tea  that  has  depreciated  by  keep- 
ing, and  on  remnants  of  old  stock,  which  has  al- 
ways been  such  a drawback.  The  shrinkage  of  old 
stocks  in  grocers’  shops  cannot  be  measured,  but 
it  must  be  considerable,  and  combined  with  the 
comparatively  light  stocks  now  held  in  bond  it  has 
strengthened  the  position,  and  accounts  for  the  fact 
— exceptional  in  produce  markets— that,  apart  from 
the  slack  time  in  the  summer,  wholesale  buyers  are 
always  operating,  and  are  ready  to  do  so  heavily  at 
favourable  opportunities.  ^ 
The  buying-power  is,  indeed,  stronger  now  than 
it  has  ever  been,  partly,  perhaps,  because  by  force 
of  circiniistaiices  the  tea-trade  has  become  closely 
allied  with  the  provision-dealing  trade  of  the  coun- 
try ; partly  from  the  strength  that  comes  with  ihe 
incieased  capital  attracted  by  Joint-.Stock  enterprise* 
partly  from  the  greater  of  capital  iii 
the  hands  of  strong  Co-operative  combinations  inter- 
rading  on  a cash  b.asis.  'This  is  a matter  of  no 
Lttle  importance  ; for  it  is  impos.siblo  to  avoid  plac- 
ing excessive  supplies  upon  the  market  at  certain 
limes;  to  absorb  them,  wholesale  buyers  with  ample 
means  and  the  will  to  use  them  are  required. 
The  ideal  policy  for  an  Indian  producer  is  to 
otter  an  equal  quantity  of  his  brand  at  regular  in- 
tervals from  August  to  April,  giving  the  market  a 
rest  in  the  summer  and  buyers  a chance  of  turnine 
over  their  stocks.  By  degrees  this  is  being  followed*^ 
but  it  cannot  be  worked  symmetrically  or  by  all 
and  Calcutta-bought  teas  cannot  generally  be  handled 
on  these  lines. 
Importers  of  Ceylon  Tea  have  from  the  outset 
seen  the  wisdom  of  regular  Sales  at  the  late  of  im- 
portation, arrivals  being  .sold,  as  a rule,  within  three 
weeks,  and  the  lirst  step  laken  to  pass  ilio.in  quirkiv 
into  use.  The  result  is  seen  in  a l.avge  trade  work.-, 1 
upon  a small  stock,  and  the  de.siicd  ineroaso  of  con- 
sumption  attained. 
intoi'eot  attaclios  to  the  pro^^i’ess  of  tlio 
Ceylon  Industry,  and  it  is  being  closely  \vatched  bv 
competitors  elsewhere  for  sign.s  of  the  deterioration 
that  some  were  led  to  exp.-ct;  bat  upon  the  whole 
wo  consider  that  the  average  (/ica/ifi/  of  Ceylon  Te- 
13  being  maintained:  its  average  h.is  declined 
somewhat,  it  is  true;  but  other  gr  ovths  hive  been 
subject  to  this  and  the  fall  this  )eir  is  due  to  the 
policy  of  those  who  have  fouinl  it  proliiahlo  to  make 
heavy  crops  instead  of  smaller  and  finer  ones  • -'hev 
have  brought  to  market  tea  of  lower  grade  thaiiiised 
to  be  or  need  be  made,  and  in  doing  so  have  widened 
Bie  margin  between  the  value  of  commoii  and  fine 
Should  they  revert  to  making  lighter  crops  the 
avoragm  i-afae  would  quickly  rise,  but  it  does  not  follow 
that  a larger  prq/d  would  be  secured. 
