Tea prices up on thin supplies amid unrest

Tea prices in Bangladesh rose at a weekly auction on Tuesday, ending two weeks of falls, due to a drop in volumes as renewed political unrest disrupted supplies.

Bangladesh has been racked by political violence since anti-government protests turned violent on Jan. 5, the first anniversary of a disputed election.

teaAt least 38 people have died and scores have been injured, most of them in firebomb attacks, amid a violent nationwide transport blockade by the main opposition party.

Tea volumes are down this week as political violence and transport blockades have disrupted supplies, an executive with National Brokers Ltd said.

Typically, demand for tea rises in Bangladesh during the winter season.

Bangladeshi tea fetched an average 190.61 taka ($2.40) per kg, compared with 185.27 taka at the previous sale, he said.

About 1.76 million kg was offered at the sole auction centre in Chittagong, of which 24 percent remained unsold. In the previous auction, about 1.9 million kg was offered, with nearly 32 percent remaining unsold.

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 to a net importer of tea because of rising consumption.

In April 2014, Bangladesh increased customs duty to 15 percent from 5 percent to discourage imports amid a drop in local prices due to ample supplies.

Following are the results of the latest auction. Figures are in Bangladesh taka per kg.

BROKENS

Bold/Large Brokens                   not quoted

Medium Brokens                       175-185

Small Brokens                      190-200

Plain Brokens                       120-140

FANNINGS

Best Fannings                       200-205

Good Fannings                       195-200

Medium Fannings                     180-195

Plain Fannings                      120-130

DUST

Pekoe Dust                           not quoted

Red Dust                             170-250

Dust                                 175-231

Churamoni Dust                       180-260

-Reuters


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