(Reuters) - Tea prices extended losses at last week ‘s auction in India, the world’s second biggest producer, as big buyers were consistently offering lower prices for poor grade produce, according to dealers.
“For last three-four weeks, buyers were offering lower prices for poor quality produce. Demand was also falling from north India,” said an official at Calcutta Tea Traders’ Association.
A pest attack of helopeltis in mid-2010 adversely affected tea gardens in the northeastern state of Assam, India’s top producer.
India’s tea production in November 2010 rose 3.7 percent from a year ago to 93.92 million kgs, while exports fell by 25.6 percent from a year ago to 15.4 million kg, data with the state-run Tea Board showed.
The average price of CTC (crush-tear-curl) tea fell by 1.35 percent to 113.55 rupees per kg, compared with 115.1 rupees at the previous auction. The average price of dust tea eased by 1.22 percent to 106.35 rupees per kg compared with 107.66 rupees in the last auction.