(Reuters) – Tea prices in Bangladesh fell for a sixth straight week at the weekly auction on Tuesday as increased volumes, the highest of the season so far, put a lid on prices.
Bangladeshi tea fetched an average 187.25 taka ($2.5) per kg at the 16th auction of the current marketing season, down from 190.29 taka at the previous week’s sale, an executive with National Brokers said.
The latest offering was the largest of the season so far, capping prices and sales, the executive said.
About 2.1 million kg were offered at the sole auction centre in Chittagong, of which 24 percent was unsold. In the previous auction, about 15 percent of the 2 million kg offered went unsold.
The national budget for the 2015/16 fiscal year that started in July raised the regulatory duty on tea imports by 5 percent to discourage overseas buying.
Tea prices fell sharply in the last marketing season on poor demand from local buyers because of the damage to business sentiment caused by renewed political unrest early this year that left more than 120 people dead and disrupted supplies.
The country, however, has moved from being a net exporter to a net importer of tea because of rising consumption.
Following are the results of the latest auction (figures in Bangladesh taka per kg):
Bold/Large Brokens 183-185
Medium Brokens 185-187
Small Brokens 185-188
Plain Brokens 160-170
Best Fannings 187-189
Good Fannings 185-187
Medium Fannings 183-184
Plain Fannings 167-172
Pekoe Dust not quoted
Red Dust 170-208
Churamoni Dust 175-210