Bangladesh tea price continues to rise on higher demand

DHAKA, Dec 12 (Reuters) - Tea prices in Bangladesh rose 2.42
percent at a weekly auction on Wednesday, after rising 5.2
percent at the previous session, due to strong demand, brokers
said.
The average price of Bangladesh tea rose to 234.93 taka
($2.91) a kg against 229.37 taka per kg the previous week, an
official at the country's largest tea broking firm, National
Brokers Limited, said.
More than 1.8 million kg of tea were offered at Bangladesh's
sole auction centre in Chittagong, with 7.77 percent unsold,
compared with 3.30 percent unsold in the previous auction when
1.7 million kg was offered.
"Prices again moved up this week mostly by taka 5.0 and
above following very strong demand from the blenders especially
for brighter teas," National Brokers said in its market report.
"There was only a little interest from the loose tea
buyers."
Around 2.43 million kg will be offered at the next auction
on Dec. 18.
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.

Following are the results of the auction in Bangladesh taka
per kg.

BROKENS
Bold/Large Brokens Not quoted
Medium Brokens 228.00 - 233.00
Small Brokens 230.00 - 235.00
Plain Brokens 210.00 - 220.00
FANNINGS
Best Fannings 234.00 - 237.00
Good Fannings 230.00 - 233.00
Medium Fannings 227.00 - 229.00
Plain Fannings 215.00 - 220.00
DUST
Pekoe Dust Not quoted
Red Dust 220.00 - 251.00
Dust 225.00 - 250.00
Churamoni Dust 220.00 - 262.00
($1=80.63 taka)

(Reporting by Serajul Quadir; Editing by Alison Birrane)