Tea prices edge lower on ample supplies

Tea prices in Bangladesh inched down at the weekly auction on Tuesday as the volumes offered were the highest for the season so far, although sales rose on strong demand for quality leaf.

teaBangladeshi tea fetched an average of 188.25 taka ($2.40) per kg at the auction, against 188.69 taka at the previous sale, an official at National Brokers Ltd said.

About 2.23 million kg was offered at the auction centre in Chittagong, with 24 percent remaining unsold. At the previous auction, around 2 million kg was offered, of which 30 percent went unsold.

The latest offering was the largest of the season so far, but strong demand from local buyers for quality tea capped the fall in prices and the sales volume rose, the official said.

Bangladesh’s tea production in 2013 rose 1.6 percent from a year earlier to a record 63.5 million kg due to favourable weather, but was still short of the domestic consumption of about 65 million kg.

In April this year, Bangladesh trebled regulatory duty to 15 percent on imports of tea to discourage overseas buying amid a drop in local prices due to ample supplies.

Bangladesh has moved from being a net exporter of tea to a net importer due to rising consumption.

Following are the results of the latest auction. Figures are in Bangladesh taka per kg.

BROKENS

Bold/Large Brokens                               165-170

Medium Brokens                                   178-182

Small Brokens                                   185-195

Plain Brokens                                               125-140

FANNINGS

Best Fannings                                               197-200

Good Fannings                                   193-196

Medium Fannings                                 178-185

Plain Fannings                                               125-140

DUST

Pekoe Dust                                                   173-178

Red Dust                                                     162-226

Dust                                                         170-207

Churamoni Dust                                  180-279

-Reuters


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