Tea prices in Bangladesh declined at the weekly auction on Tuesday as the volumes offered were the highest for the season so far, although strong demand for quality leaf capped the fall.
Bangladeshi tea fetched an average of Tk184.13 ($2.40) per kg at the auction, against Tk188.71 at the previous sale, an official at National Brokers Ltd said.
About 2.5 million kg was offered at the auction centre in Chittagong, with 26 percent remaining unsold. At the previous auction, around 2.21 million kg was offered, of which 22 percent went unsold.
The latest offering was the largest of the season so far, but strong demand from local buyers for quality tea limited the fall, the official said.
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, but was still short of the domestic consumption of about 65 million kg.
In April this year, Bangladesh trebled regulatory duty to 15 percent on imports of tea to discourage overseas buying amid a drop in local prices due to ample supplies.
Bangladesh has moved from being a net exporter of tea to a net importer due to rising consumption.
Following are the results of the latest auction. Figures are in Bangladesh taka per kg.
BROKENS
Bold/Large Brokens 158-163
Medium Brokens 170-178
Small Brokens 177-188
Plain Brokens 115-130
FANNINGS
Best Fannings 188-193
Good Fannings 182-187
Medium Fannings 170-186
Plain Fannings 120-130
DUST
Pekoe Dust 165-185
Red Dust 168-222
Dust 170-228
Churamoni Dust 175-260