Tuesday, 27 November 2012 19:31
DHAKA: Tea prices in Bangladesh rose 2 percent at a weekly auction on Tuesday, after rising 1.5 percent at the previous session, on strong demand for good varieties and on tight supplies, brokers said.
The average price of Bangladeshi tea rose to 217.94 taka ($2.7) a kg against 213.57 taka per kg the previous week, an official at the country's largest tea broking firm, National Brokers Limited, said.
Nearly 1.8 million kg of tea were offered at Bangladesh's sole auction centre in Chittagong, with 5.57 percent unsold, compared with 2.27 percent unsold in the previous auction when more than 1.9 million kg was offered.
Around 1.8 million kg will be offered at the next auction on Dec. 4.
Tea sold at the Chittagong auction is mostly bought by domestic buyers.
Bangladesh's tax authority in January imposed a 25 percent duty on imports of tea to safeguard the local industry.
The south Asian country produces 60 million kg of tea a year against demand of 56 million kg. But tea consumption is rising by 4.5 percent annually, in line with steady economic growth.
Copyright Reuters, 2012