Tea prices fall for 6th week on ample supply

Tea prices in Bangladesh fell for a sixth straight week at the weekly auction on Tuesday as increased volumes, the highest of the season so far, put a lid on prices.

Bangladeshi tea fetched an average 187.25 taka ($2.5) per kg at the 16th auction of the current marketing season, down from 190.29 taka at the previous week’s sale, an executive with National Brokers said.

tea cupThe latest offering was the largest of the season so far, capping prices and sales, the executive said.

About 2.1 million kg were offered at the sole auction centre in Chittagong, of which 24 percent was unsold. In the previous auction, about 15 percent of the 2 million kg offered went unsold.

The national budget for the 2015/16 fiscal year that started in July raised the regulatory duty on tea imports by 5 percent to discourage overseas buying.

Tea prices fell sharply in the last marketing season on poor demand from local buyers because of the damage to business sentiment caused by renewed political unrest early this year that left more than 120 people dead and disrupted supplies.

The country, however, has moved from being a net exporter to a net importer of tea because of rising consumption.

Following are the results of the latest auction (figures in Bangladesh taka per kg):

BROKENS

Bold/Large Brokens                   183-185

Medium Brokens                       185-187

Small Brokens                       185-188

Plain Brokens                       160-170

 

FANNINGS

Best Fannings                       187-189

Good Fannings                       185-187

Medium Fannings                 183-184

Plain Fannings                       167-172

 

DUST

Pekoe Dust                                  not quoted

Red Dust                                      170-208

Dust                                               170-212

Churamoni Dust                       175-210


Share: