Tea prices in Bangladesh rose sharply on Tuesday at a weekly auction because of higher demand from domestic buyers amid a tight supply, brokers said. The average price of Bangladeshi tea rose 5.7 percent to 166.72 taka ($2) per kg from the previous sale, said an official at the National Brokers Limited, the country's largest tea broking firm.
Around 2 million kg of tea was offered at the country's only auction centre, in the main port city Chittagong, and 15.27 percent was left unsold. That compared with 16.5 percent unsold in the previous auction when offer was 2.1 million kg. "Demand is huge from domestic buyers but supply is not enough in the winter season," the official said.
Bangladesh has become a net importer of tea after previously ranking as the world's fifth-largest exporter. Tea exports fell to $3.2 million in the fiscal year ended in June from $5.65 million the previous year, mainly due to growing domestic demand. Pakistan, the United Arab Emirates and Saudi Arabia are the main importers of Bangladeshi tea. The next auction will be held on January 10, with around 1.7 million kg on offer.
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