Bangladesh tea prices mark 7th weekly gain on winter demand

Tea prices in Bangladesh rose for the
seventh straight week at the weekly auction on Tuesday amid
strong demand in the winter season.
    Bangladeshi tea fetched an average 192.96 taka ($2.4) per kg
compared with 192.04 taka at the previous sale, said an
executive with National Brokers Ltd. The price for last week's
auction was revised from 192.15 taka.
    About 2.3 million kg was offered at the auction centre in
Chittagong, of which 17 percent went unsold. In the previous
auction, nearly 2.3 million kg was offered, with nearly 15
percent remaining unsold.
    Demand was strong from local buyers due to the winter
season, boosting prices, the executive said.
    Typically, demand for tea rises in Bangladesh during the
winter season.
    Tea production in Bangladesh rose 1.6 percent in 2013 to a
record 63.5 million kg due to favourable weather, but was still
short of the domestic consumption of about 65 million kg.
    The country has moved from being a net exporter to a net
importer of tea due to rising consumption.
    In April this year, Bangladesh increased customs duty to 15
percent from 5 percent to discourage imports amid a drop in
local prices due to ample supplies. 
    Following are the results of the latest auction. Figures are
in Bangladesh taka per kg.
 Bold/Large Brokens                   not quoted
 Medium Brokens                       183-188
 Small Brokens                        192-199
 Plain Brokens                        130-150
 Best Fannings                        197-202
 Good Fannings                        192-195
 Medium Fannings                      186-191
 Plain Fannings                       140-160
 Pekoe Dust                           not quoted
 Red Dust                             130-226
 Dust                                 170-260
 Churamoni Dust                       175-245  

($1 = 77.90 Bangladesh taka)

Source: Reuters