Bangladesh tea prices rally amid tight supplies

DHAKA: Tea prices in Bangladesh rose at the weekly auction for the 11th time in a row on strong demand for quality leaf and tight supplies.

Bangladeshi tea fetched an average of 283.27 taka ($2.7) per kg in the port city of Chittagong on Tuesday, compared with 276.34 taka at the previous sale.

There was robust demand from buyers while supplies were lower than the last sale, an official at National Brokers said.

About 4.3 percent of the 2.33 million kg offered in the auction was left unsold. At the previous auction, around 2.48 million kg was offered, of which 2.2 percent went unsold.

Bangladesh's tea production dropped to nearly 79 million kg in 2017 from a record 85 million kg the previous year, which officials attributed to excessive rainfall.

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