Bangladesh tea output rises 27% in 2016 to record level

Friday, 21 April 2017 00:00 - - {{hitsCtrl.values.hits}}

DHAKA (Reuters): Bangladesh’s tea output rose by nearly 27% in 2016 to a record 85 million kg, official data showed, a quantity that may be big enough to make imports unnecessary.

The south Asian country was the world’s fifth-largest tea exporter in the 1990s but has became a net importer due to a big increase in domestic consumption.

Domestic consumption has been rising by more than 3% a year, in line with economic growth. It now stands at about 81.6 million kg.

Tea is sold at the country’s sole auction centre, in the port city of Chittagong, where most of it is picked up by domestic buyers.

The first weekly auction of the new marketing season will take place on April 25, brokers said.

A total of 45 auctions will be held in the 2017/18 marketing season, compared with 46 sales the previous season.

Tea prices edged up at the last auction of the 2016/17 season held on March 21, on strong demand for quality leaf, while sales rose despite a higher volume on offer.

Last year, Bangladesh exported 510,000 kg of tea, down from 550,000 kg in 2015. Pakistan, the United Arab Emirates and Saudi Arabia are the main importers of Bangladeshi tea.

Bangladeshi buyers have also imported tea in bulk from India and Thailand, industry sources said.