Tea prices rise in last auction of the season

Risingbd Desk, DHAKA, Apr 30: Tea prices in Bangladesh rose on Tuesday at the last auction of the current season, snapping a three-week run of declines, although a large volume remained unsold due to higher supplies of end-season poor grade leaf.

Bangladeshi tea fetched an average of 68.03 taka ($0.88) per kg at the auction, up from 59.21 taka at the previous week`s sale, an official from National Brokers Limited said.

Buyers showed some interest in the last sale of this season, the official said.

Bangladeshi buyers have been importing tea in bulk from neighbouring India, contributing to a glut in the domestic market and reducing demand at the auction, industry sources said.

Earlier this month, however, the Bangladeshi tax authority trebled regulatory duties to 15 percent on imports of tea to discourage overseas buying as local prices have fallen on ample supplies.

Around 800,000 kg was offered at the sole auction centre in Chittagong, and 47 percent remained unsold. At the previous auction, more than 974,000 kg was offered, of which nearly 46 percent went unsold.

The auction season, typically to end-March, had been extended through April. The first auction of the next season will take place on May 14.

Bangladesh`s tea production in 2013 rose 1.6 percent from a year earlier to a record 63.5 million kg due to favourable weather.

That still fell short of domestic consumption of about 65 million kg. Bangladesh has moved from becoming a net exporter to a net importer of tea as consumption has risen.

Reuters

risingbd/Augustin Sujan