Bangladesh tea prices rise on strong winter demand

Tea prices in Bangladesh rose at the weekly auction for the second time in a row, thanks to strong winter demand and tight supplies.

Bangladeshi tea fetched an average price of 238.25 taka ($2.80) per kg at the auction held on Tuesday, compared with a revised price of 236.80 taka at the previous sale, National Brokers said.

There was strong demand as buyers wanted to stock up for the winter, while supplies were lower than last week, a National Brokers official said.

Demand for tea in Bangladesh usually rises in winter.

However, about 19 per cent of the 2.27 million kg offered at the sole auction centre in Chittagong was unsold, compared with

15 per cent unsold of the 2.62 million kg offered in the previous auction.

Bangladesh’s tea production jumped nearly 27 per cent in 2016 to a record 85 million kg, helped by favourable weather conditions, making imports a choice not a necessity.

The South Asian country was the world’s fifth-largest tea exporter in the 1990s but is now a net importer due to a surge in domestic consumption in line with economic growth.

Following are the results of the latest auction (figures in Bangladesh taka per kg):

BROKENS

Bold/Large Brokens 226-230

Medium Brokens 230-238

Small Brokens 234-240

Plain Brokens 165-190

FANNINGS

Best Fannings 245-250

Good Fannings 238-243

Medium Fannings 230-233

Plain Fannings 175-195

DUST

Pekoe Dust 230-251

Red Dust 168-280

Dust 163-295

Churamoni Dust 189-275