Tea
prices in Bangladesh fell for a third straight week at a weekly auction on
Tuesday due to tepid local demand amid a supply glut.
Tea
prices dropped 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.
Bangladeshi
tea fetched an average 196.52 taka ($2.5) per kg at the auction on Tuesday, the
seventh of the new marketing season, compared with 204.68 taka at the previous
sale, said an
executive
with National Brokers Ltd.
“Prices
witnessed a sharper decline this week with all varieties easing quite
considerably,” National Brokers said in a market report.
About
1.23 million kg was offered at the sole auction centre in Chittagong, of which
nearly 11 percent was unsold. In the previous auction, about 6 percent of 1.2
million kg was unsold.
The
national budget for the 2015/16 fiscal year unveiled last week raised
regulatory duty on tea imports by 5 percent to discourage overseas buying.
The
country, however, has moved from being a net exporter to a net importer of tea
because of rising consumption. (Source: Reuters)
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