(Control. over ithe importation of wheat from occupied areas in Kiangsu and Anhwei to Shanghai, similar to the restrictions placed on transportation of rice, which fact is responsible for the stoppage of supply of wheat during the past few weeks, has caused the price of flour to rise to the record high mark of over $10 per bag in the Shanghai market. A check with flour business circles reveals that no native wheat has arrived here during the past fortnight. It is stated that the populace here needs 8,000 bags of flour daily.
The same circles sce the possibility of the price being further increased if no supply is forthcoming, in which event, foreign wheat will have to be bought to replace the native wheat which cannot be obtained from the interior. It is stated that the cheapest foreign wheat is the Australian wheat which is at present priced at $25 per picul. If the Australian wheat is right to supply the Shanghai market then the price of.flour will be increased to $12 per bag with little profit to flour merchants.
Shanghai has been depending on wheat-producing districts in Kiangsu ud Anhwei for the supply of wheat but, during the past few weeks, the supply has been stopped. The situation is viewed with alarm by both flour merchants and the Chinese press which is appealing for public attention to the shortage. It is learned t the ready stock of wheat in Shanghai at present will still last four months, whereas formerly the city kept about two months' supply with fresh supplies arriving daily The control over the business is so rigid that outport merchants are buying flour in the Shanghai market, it is further learned. At present even $11 is offered by outport buyers but local flour merchants are reluctant to sell their ready stock because they want to keep the price down in favour of local consumers. Hope is expressed that authorities concerned will tackle with the problem immediately. Yesterday, one big outport order w rejected by a big firm here.
Text read from the printed page and cleaned; old type leaves the occasional error.