Tea prices fall on poor quality amid political unrest
26 February 2015, Nirapad News: Tea prices declined for the fourth straight week at a weekly auction at National Brokers Limited (NBL) in Chittagong Tuesday due to supplies of poor grade leaf amid political unrest.
Demand from local buyers was sluggish as political violence and uncertainties hurt business sentiment while volumes also slipped amid non-stop transport blockades disrupting supplies, an executive with NBL said.
Bangladeshi tea fetched an average 174.30 taka ($2.40) per kg, compared with 185.94 taka at the previous sale, he said. There were higher supplies of poor quality tea for which buyers sought discounts, also leading to a drop in overall prices, he added. About 1.63 million kg was offered at the sole auction center in Chittagong, of which 31 per cent remained unsold.
In the previous auction, about 1.75 million kg was offered, with nearly 38 per cent remaining unsold.
Tea production in the country rose 1.6 per cent in 2013 to a record 63.5 million kg due to favorable weather but was still short of the domestic consumption of about 65 million kg. The country has moved from being a net exporter to a net importer of tea because of rising consumption.
Following is the tea market report of the sale 40 held Tuesday at Chittagong, according to NBL press release.
CTC LEAF: Offer for 24,783 packages met with an improved demand.
BROKENS: There was only a few clean brokens available which were strongly competed for and generally appreciated up to Tk 5 particularly the BOPs. Smaller cleaner varieties also sold well in line with quality and these could be quoted between Tk. 195 and Tk 210. Other varieties particularly the plainer types saw a little more interest and sold at irregular rates. There was less withdrawals in this category,
FANNINGS: There were only a few clean liquoring Fannings offered which were very strongly competed for and generally sold at dearer rates, selling between Tk.205 and Tk225. Medium and other varieties were about steady. Plainer types received a little more interest than before and a fair weight of tea sold at dearer rates.
CTC DUST: There was strong demand for the offer of 5,011 packages of tea. Good liquoring varieties were firm to slightly dearer whilst others sold at around last levels easing slightly in line with quality.