Flour for Fiji

Devaluation Means Dear Flour for Fiji And Dearer Petroleum Products

ONE of the results of the devaluation of sterling and the Australian £ against the dollar, is the sudden increase in the price of Australian export wheat and flour. (Under the terms of the Interna tional Wheat Agreement, to which Aus tralia is a party, prices for wheat are expressed in terms of Canadian dollars.) Howls of protest have come from the UK and India and some indication of the extent of this rise can be seen in the fact that the Fiji Government has re-intro duced a subsidy on flour to ease the burden on the Colony’s residents. With the subsidy, the new price of flour in Fiji will be sd. per lb.

Before devaluation of sterling, the Australian f.o.b. price of flour was £27/5/per ton. The immediate effect of the change in the pound-dollar exchange rate was to increase the Australian f.o.b. price to £39/7/6 per ton. Stocks bought at this price are now awaiting sale in Fiji, and further shipments, bought at a higher price, are expected shortly.

In addition to its effect upon the prime cost of flour and sharps, currency de valuation has also caused an increase in ocean freight rates. Until November 1, 1947, the special freight rate for flour and sharps was 47/3 per ton (Australian currency). This later became 70/- and has now been increased to 80/- per ton.

The rise in the dollar exchange rate has increased the cost of all petroleum pro ducts, and the first price increase m Fiji due to the recent adiustment took place at the beginning of November when oil companies were permitted to raise their selling price of automotive diesel oil by fourpence per gallon. The maximum re tail selling price of automotive engine lubricating oils has increased by 1/6 a gallon to 10/9J a gallon, and the maxi mum selling price of mobilite and shellite lighting and heating fluid by 6d. per gallon to 4/6 a gallon. .

Following price rises for petrol in Aus tralia (now 3/- per gallon) it is certain that the pnce of petrol in the Colony will rise also.