Tea prices in Bangladesh edged down at the weekly auction on Tuesday, snapping a two-week run of gains, on higher supplies and tepid demand from local buyers ahead of the Muslim festival, brokers said.
Bangladeshi tea fetched an average 198.97 taka ($2.5) per kg at the auction, the 11th of the new marketing season, compared with 199.33 taka at the previous sale, an executive with National Brokers said.
“There was less demand from local buyers ahead of the Eid holidays,” he said referring to the Eid al-Fitr celebrations, due on Saturday on sighting of the moon, marking the end of the holy fasting month Ramadan.
However, the volume sold rose from last week despite a higher quantity on offer this week, he added.
About 1.27 million kg was offered at the sole auction center in Chittagong, of which nearly 2 percent was unsold. In the previous auction, about 6 percent of the 1.24 million kg offered was unsold.
The national budget for the 2015/16 fiscal year unveiled early this month raised regulatory duty on tea imports by 5 percent to discourage overseas buying.
Tea prices dropped sharply in the last marketing season on poor demand from local buyers because of 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):
Bold/Large Brokens 190-198
Medium Brokens 195-200
Small Brokens 195-200
Plain Brokens 170-175
Best Fannings 196-199
Good Fannings 193-195
Medium Fannings 187-192
Plain Fannings 170-175
Pekoe Dust not quoted
Red Dust 185-225
Churamoni Dust 190-256