Dhaka, Bangladesh (BBN) – The average prices of different categories of tea rose some 2.5 percent to BDT 171.61 per kg at the weekly auction on Tuesday, brokers said.
Some 16.51 per cent, mostly plainer varieties, of nearly 1.6 million kg on offer remained unsold following quality and were taken back to storage as carryover for the next sale.
Internal buyers including exporters mainly to Pakistan, Afghanistan and the
Commonwealth of Independent States participated at the auction held in Chittagong, the lone tea auction centre of the country.
Buyers, mainly blenders were quite active bidding for well made teas quoting prices at sellers’ favour. Loose tea traders were also strong in competition, the Financial Express (FE), a local newspaper, reported.
However most plainer varieties of leaves failed find buyers, resulting in fair withdrawal, a market report by the Bangladesh National Brokers Limited, the largest tea broking firm of the country said.
The strong demand persisted on the second consecutive sale on Tuesday after the auction resumed on August 9, after buyers boycotted the sales on July 26 and August 2 over a stalemate on a new tax on traders, brokers said.
Buyers agreed to return to the auction on August 9 after the tax authorities had said they would not impose the tax until further notice. The agreement came following a meeting between the tax
The entire annual production of some 60 million kg from 163 tea gardens of the country is distributed by the six registered brokers at the lone auction centre in the port city of Chittagong.
Different grades were sold between BDT 135 and BDT 239 per kg, which was the top price for some 400 kg of Golden Broken Orange Pekoe.
Good liquoring Brokens were sold between BDT 135 and BDT 170 per kg. Fannings were sold between BDT 140 to BDT 180.
The next weekly auction will be held on Tuesday, August 23 with an offering 1.53 million kg.
BBN/SSR/AD-17Aug11-12:07 pm (BST)
