Indian tea prices rise

Average tea prices in India, the world's second-biggest producer, edged higher at last week's auction on strong demand amid a slight drop in supplies from the top-producing Assam state. The CTC (crush-tear-curl) grade leaf was sold at 162.16 rupees ($2.75) per kg, up 1.75 percent from the previous auction, while prices of the dust grade rose 0.62 percent to 163.31 rupees per kg. "Supplies were lower than in the previous auction. Demand was robust from Tata Global Beverages, but HUL (Hindustan Unilever Ltd) was selective," said a Kolkata-based dealer.
Tea output in Assam is likely to fall by 10 percent in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world's biggest black tea producer.