XN000022-1973-06-21 — Page 3

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Thursday, June 21, 1973

SPOT CHECKS SHOW FALL-OFF IN RICE PRICES

FERRÉ E

Spot checks by inspectors from the Commerce and Industry Department

show that retail rice prices are falling back to acceptable levels.

During the past two days shops retailing rice on both sides of the

harbour have been visited and rice is now being sold in the price range

$1.20 to $1.80 per catty.

When "panic buying" started due to completely unfounded fears that

Hong Kong might face a rice shortage, prices went as high as $2 to $2.20 per

catty.

"We are now satisfied that the market has stabilised, but a close

eye will be kept on prices to ensure that no unreasonable fluctuation occurs,"

a spokesman for the department said today.

Stern warnings to "toe the line" have been given by the department

to rice trade operators who have abused the government's control scheme.

One importer who failed to offer reasonable supplies for sale has

been ordered to put on the market the balance of his stock at the normal

market rates (3115 per picul for one hundred percent whole Thai Rice).

If he finds difficulty in securing buyers, the Commerce and Industry

Department will authorise alternative retail outlets to purchase from him

directly.

Several wholesalers who put an excessive "mark-up" on their supplies

to retailers have been warned that unless they can give a satisfactory explanation

it may be necessary to advise registered importers to make no further sales to

them.

/Wholesalers