Tea prices in Bangladesh fell at the weekly auction on Tuesday from the previous sale, due to larger supplies of inferior quality, although strong demand for quality leaf limited the slide and sales rose.
More than 2.47 million kg was offered at the auction centre in Chittagong, with 18.3 percent going unsold. The last time, about 2.45 million kg was offered, of which nearly a fifth went unsold. Buyers showed little interest in buying poor quality tea and that pulled down average prices, the official said. Robust demand from local buyers for quality tea capped the fall and sales volume rose despite the bigger supplies as the auction took place after a week’s gap due to the Muslim holiday of Eid al-Adha, he added.
Tea production in Bangladesh rose 1.6 percent in 2013 to a record 63.5 million kg due to favourable weather, but was still short of the domestic consumption of about 65 million kg. The country has moved from being a net exporter of tea to a net importer due to rising consumption.