Bangladesh tea price continues to rise on higher demand

Wed Dec 12, 2012 7:07pm IST

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)
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