Thursday, June 18, 2015

Bangladesh tea prices dip for third week amid ample supply

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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