Indian tea prices drop on sluggish demand

Average tea prices in India, the world's second-biggest producer, fell at this week's auction on a slight drop in demand amid a rise in the supply of poor grade leaf. The CTC (crush-tear-curl) grade leaf was sold at 149.26 rupees per kg this week, down 2.3 percent from the previous auction, while prices of the dust grade edged down 2.5 percent to 156.55 rupees per kg. "Demand was slightly lower than last week. Supplies of poor quality leaf have started rising and many buyers are not interested in it," said a Kolkata-based dealer.