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18.
WEDNESDAY, JULY 3, 1974
PRICE
REDUCTION IN MAXIMUM RETAIL PRICE FOR RICE
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A FIVE CENT REDUCTION IN THE MAXIMUM RETAIL PRICE OF RICE FROM $2.50 TO $2.45 PER CATTY WAS ANNOUNCED TODAY BY THE COMMERCE AND INDUSTRY DEPARTMENT.
THE NEW CEILING ON RETAIL PRICES WAS FIXED AT A MEETING OF THE RICE ADVISORY COMMITTEE WHICH REVIEWED PREVAILING IMPORT PRICES.
A COMMERCE AND INDUSTRY DEPARTMENT SPOKESMAN SAID THAT THE LOWER CEILING ON RETAIL PRICES WOULD TAKE EFFECT IMMEDIATELY AND REMAIN IN FORCE UNTIL THE END OF THIS MONTH WHEN THE PRICE STRUCTURE WOULD AGAIN BE REVIEWED.
+RETAIL RICE PRICES HAVE ALREADY FALLEN BELOW THE CEILING OF $2.50 PER CATTY WHICH HAS APPLIED SINCE APRIL WHEN WE INTRODUCED A MAXIMUM PRICE STRUCTURE TO PREVENT PROFITEERING,+ THE SPOKESMAN COMMENTED.
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+WE DON'T ANTICIPATE THAT RETAILERS WILL CHARGE UP TO THE NEW MAXIMUM OF $2.45 PER CATTY IN FACT MANY ARE ALREADY SELLING BELOW THIS CEILING.
+HOWEVER WE THINK IT IS IN THE INTERESTS OF THE CONSUMER TO CONTINUE TO FIX A RETAIL PRICE CEILING+.
+THIS PROVIDES PROTECTION FOR THE CONSUMER, BUT DOES NOT PREVENT THE TRADE FROM SELLING AT LOWER PRICES TO TAKE ACCOUNT OF FLUCTUATIONS IN MARKET CONDITIONS+.
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THE SPOKESMAN SAID THAT BOTH IMPORTERS AND RETAILERS WERE CONTINUING TO TAKE A LOWER MARK-UP THAN THE D.C.AND T AVERAGE PRICE FORMULA WOULD ALLOW. THE FORMULA IS BASED ON THE AVERAGE IMPORT PRICES OVER A PERIOD OF THREE MONTHS, TO TAKE ACCOUNT OF THE STOCKS WHICH IMPORTERS ARE REQUIRED TO MAINTAIN.
THEREFORE, ALTHOUGH IMPORT PRICES HAVE FALLEN TO A SIGNIFICANT EXTENT THIS MONTH, IT DOES NOT FOLLOW THAT RETAIL PRICES OF RICE FALL TO THE SAME EXTENT.
THUS UNDER THE FORMULA, THE MAXIMUM RETAIL PRICE, ALLOWING ONLY A REASONABLE PROFIT, WOULD BE $2.63 A CATTY. NOT ONLY HAS THE PRICE BEEN FIXED BELOW THIS AT $2.45 BUT RETAILERS ARE SELLING EVEN BELOW THIS PRICE.
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