Indian tea extends losses

Average tea prices in India, the world's second-biggest producer, extended losses at this week's auction on sluggish demand from buyers and an expected rise in supplies in coming weeks. The CTC (crush-tear-curl) grade leaf was sold at 145.02 rupees per kg this week, down 2.8 percent from the previous auction, while prices of the dust grade fell 1.8 percent to 153.81 rupees per kg.
"Premier grade supplies have come down, and for average grade leaf, buyers were not ready to pay a higher price," said a Kolkata-based dealer. India's tea production in June rose 3.3 percent from a year earlier to 141.32 million kg as plucking gained momentum in the southern states of Tamil Nadu and Kerala. The country's tea exports in the first half of 2014 rose 6.7 percent from a year earlier to 94.53 million kg due to higher purchases by the UK and Pakistan.