Tea prices up at start of new auction season  

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.

teaSales volumes also rose this week, although a good quantity of tea remained unsold, he added.

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.

BROKENS

Bold/Large Brokens            175-185

Medium Brokens                  180-190

Small Brokens                        190-205

Plain Brokens                         170-180

FANNINGS

Best Fannings                         195-205

Good Fannings                       185-190

Medium Fannings                 180-185

Plain Fannings                        170-175

DUST

Pekoe Dust                                190-195

Red Dust                                    190-210

Dust                                             200-223

Churamoni Dust                     250-320

 

-Reuters


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