Bangladesh tea prices drop on higher supply

Thursday, 29 December 2011 01:15 - - {{hitsCtrl.values.hits}}

DHAKA (Reuters): Tea prices in Bangladesh declined on Tuesday at a weekly auction as an increase in supply outstripped demand from domestic buyers, brokers said.

The average price of Bangladeshi tea fell 1.65 percent to 157.63 taka ($1.93) per kg from the previous sale, said an official at the National Brokers Limited, the country’s largest tea broking firm.

Around 2.1 million kg of tea was offered at the country’s only auction centre, in the main port city Chittagong, and 16.47 percent was left unsold.

“Huge supply pushed the price a bit lower,” the official said. Good liquoring varieties continued to attract strong competition from all sections of the market, the statement from the broker said.

“As a result, these appreciated further. Blenders were more active this week, whilst loose tea buyers lent fairly good support,” it said.

The country has become a net importer of tea after previously ranking as the world’s fifth-largest exporter

Tea exports fell to $3.2 million in the fiscal year ended in June from $5.65 million the previous year, mainly due to growing domestic demand.

Pakistan, the United Arab Emirates and Saudi Arabia are the main importers of Bangladeshi tea.

The next auction will be held on Jan. 3, with around 1.62 million kg on offer.

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