February 1, 2018, 10:47 am
Tea prices dipped sharply at Bangladesh’s weekly auction, dragged down by inferior leaf quality despite lower volumes on offer.
Bangladeshi tea fetched an average price of 215.21 taka ($2.80) per kg at Tuesday’s auction, compared with a revised price of 229.60 taka in the previous sale, National Brokers said.
The volume of poor-grade leaf was higher and that contributed to a sharp decline in prices, while supplies were lower than last week, a senior National Brokers official said.
About 35 per cent of the 2.4 million kg offered at the sole auction centre in Chittagong was unsold, compared with 39.5 per cent unsold of the 2.5 million kg offered at the previous auction.
Bangladesh’s tea production jumped nearly 27 per cent in 2016 to a record 85 million kg, helped by favourable weather, making imports a choice rather than necessity.
The South Asian country was the world’s fifth-largest tea exporter in the 1990s but is now a net importer because of a surge in domestic consumption in line with economic growth.
Following are the results of the latest auction (figures in
Bangladesh taka per kg):
Bold/Large Brokens not quoted
Medium Brokens 205-210
Small Brokens 210-215
Plain Brokens 150-175
Best Fannings 225-230
Good Fannings 220-225
Medium Fannings 205-215
Plain Fannings 150-175
Pekoe Dust not quoted
Red Dust 138-251
Churamoni Dust 195-246