Bangladesh tea prices end seven-week climb

Friday, 2 January 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Tea prices in Bangladesh fell at the weekly auction on Tuesday, snapping a seven-week run of gains, on subdued demand and lower supply of premier-quality leaf. Bangladeshi tea fetched an average 191.02 taka ($2.40) per kg, compared with 192.96 taka at the previous sale, said an executive with National Brokers Ltd.

About 2.23 million kg was offered at the auction centre in Chittagong, of which 24% went unsold. In the previous auction, nearly 2.3 million kg was offered, with nearly 17% remaining unsold. There was less demand from local buyers owing to a drop in supplies of quality tea, the executive said. Anti-government strikes were also partly blamed for the slide, he added. Typically, demand for tea rises in Bangladesh during the winter season. Tea production in Bangladesh rose 1.6% in 2013 to a record 63.5 million kg thanks to favourable weather but was still short of 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 this year Bangladesh increased customs duty to 15% from 5% to discourage imports amid a drop in local prices due to ample supplies.