Tea prices in Bangladesh rose on Wednesday at the first auction of the new auction season, on the arrival of fresh and good quality leaf, brokers said.
Bangladeshi tea fetched an average of 194.27 taka ($2.50) per kg at the auction, up from 68.03 taka at the last auction of the previous season, which was extended through April from the typical close at end-March, an official from National Brokers Limited said.
Major buyers were back to the market on the arrival of fresh leaf at the first auction of the new season, the official said.
More than 1 million kg was offered at the sole auction centre in Chittagong, and 37 percent remained unsold. At the previous auction on April 29, around 800,000 kg was offered, of which nearly 47 percent went unsold.
Bangladeshi buyers have been importing tea in bulk from neighbouring India, contributing to a glut in the domestic market and reducing demand at the auctions, industry sources said.
Last month, however, the Bangladeshi tax authority trebled regulatory duties to 15 percent on imports of tea to discourage overseas buying as ample local supplies have driven down prices.
Bangladesh’s tea production in 2013 rose 1.6 percent from a year earlier to a record 63.5 million kg due to favourable weather.
That still fell short of domestic consumption of about 65 million kg. Bangladesh has moved from becoming a net exporter to a net importer of tea as consumption has risen.
Following are the results of the latest auction. Figures are in Bangladesh taka per kg.
Bold/Large Brokens 175-185
Medium Brokens 180-190
Small Brokens 190-205
Plain Brokens 170-180
Best Fannings 195-205
Good Fannings 185-190
Medium Fannings 180-185
Plain Fannings 170-175
Pekoe Dust 190-195
Red Dust 190-210
Churamoni Dust 250-320