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Tea prices in India, the world's second-biggest producer, dropped at last week's auction on a jump in supplies amid moderate demand from local buyers. The CTC (crush-tear-curl) grade was sold at 147.04 rupees ($2.49) per kg, down 1.15 percent from the previous week's auction, while the dust variety was sold at 157.21 rupees per kg, down 4.4 percent.
"In last week's auction supplies rose. Tata Global Beverages was active, but HUL (Hindustan Unilever Ltd) was making very selective purchase. Local buyers were also cautious," said a Kolkata-based trader. Rainfall has been 39 percent lower than normal in India's top tea producing Assam state in the current monsoon season that started on June 1, weather department data showed, raising concerns over tea production.

Copyright Reuters, 2013

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