Tea prices in Bangladesh continued to fall for a third week due to less demand from foreign buyers, brokers said on Tuesday. The average price of Bangladeshi teas fell by 5.2 percent to 160.75 taka ($2.2) per kg at the weekly auction on Tuesday from last week's sales.
More than 25 percent of the 1.63 million kg on offer remained unsold and were returned to storage. The country has recently become a net importer of tea after previously ranking as the world's fifth-largest exporter. Bangladeshi buyers, including exporters mainly to the Commonwealth of Independent States and Pakistan participated in the auction, held in the country's lone auction centre in the main port city Chittagong.
"Prices declined over a broad front at this week's sale often losing 7 to 8 taka over last levels," National Brokers Limited, the largest tea broking firm in the country, said in its market report. "Blenders were fairly active although held much lower limits whilst there was fair support from the loose tea buyers for popular marks." Different grades were sold between 135 taka ($1.8) and 216 taka per kg at the auction, weaker than last week's 138 taka to 226 taka. The next auction will be held on next Tuesday, July 12 with offer of more than 1.5 million kg.