Tea prices in Bangladesh fell sharply at a weekly auction on Tuesday on weak demand from local buyers, brokers said. The average price of Bangladeshi tea was lower at 255.14 taka ($3.3)per kg, compared with 275.62 taka at the previous auction, an official at National Brokers Ltd said on Wednesday.
More than 1.5 million kg of tea was offered at the auction in Chittagong, with 18 percent remaining unsold, compared with around 1.3 million kg offered and 2.55 percent unsold at the previous one. Last year, Bangladesh's tax authority imposed a 25 percent duty on tea imports to safeguard the local industry.The South Asian country produces 60 million kg of tea a year against a demand of 56 million. Tea consumption is rising by 4.5 percent annually, in line with steady economic growth.