4:42 pm - Saturday January 18, 3603

Tea prices snap 2-week run of gains

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.

tea“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):

BROKENS

Bold/Large Brokens             190-198

Medium Brokens                   195-200

Small Brokens                       195-200

Plain Brokens                       170-175

FANNINGS

Best Fannings                       196-199

Good Fannings                     193-195

Medium Fannings                 187-192

Plain Fannings                     170-175

DUST

Pekoe Dust                                   not quoted

Red Dust                                     185-225

Dust                                        185-230

Churamoni Dust                   190-256

-Reuters


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