Tea prices plunge again on poor grade

Tea prices in Bangladesh plunged for a ninth straight week at a weekly auction on Tuesday, dragged down by inferior quality leaf near the end of the season, brokers said.

Bangladeshi tea fetched an average of 109.66 taka ($1.40) per kg at the auction, down from 125.85 taka in the previous week’s sale, when prices fell 12 percent, an official from National Brokers Limited said.

Nearly 2.4 million kg was offered at the auction centre in Chittagong, and 62 percent remained unsold. At the previous auction, 2.68 million kg was offered, of which nearly 50 percent went unsold.

“Buyers were seeking season-end supplies at lower prices, although more than half of the tea that was offered in the auction went unsold,” the official said.

The auction season, typically to end-March, has been extended through April.

Bangladeshi buyers have imported tea in bulk from neighbouring India, contributing to a glut in the domestic market and reducing demand at the auction, industry sources said.

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

BROKENS

Bold/Large Brokens              90-110

Medium Brokens                   105-125

Small Brokens                         110-130

Plain Brokens                          40-55

FANNINGS

Best Fannings                          170-180

Good Fannings                         135-145

Medium Fannings                   105-115

Plain Fannings                          40-50

DUST

Pekoe Dust                                   Not quoted

Red Dust                                        90-155

Dust                                                 90-200

Churamoni Dust                        90-305

-Reuters.