Tea prices in India fell at last week's auction as supplies from Assam and Bangladesh reached markets, but dealers expect winter demand to support prices. The price of CTC (crush-tear-curl) tea fell 2.17 percent to 148.77 rupees per kg, while the dust variety eased nearly 1 percent to 149.44 rupees per kg. "Supplies from Assam and West Bengal are coming at the auction centres. But any sharp fall is unlikely because demand is strong from local buyers," said Kalyan Sundaram, Secretary, Calcutta Tea Traders' Association.

Tea consumption rises in India during the winter months as people prefer it over cold drinks. Tea plucking in India usually rises between July and October. India's tea exports in April to September dropped by a fifth from last year to 81.85 million kg, the state-run Tea Board said in a statement. India's tea production in the first nine months of the year fell 1.3 percent year-on-year to 772.5 million kg as dry weather in Assam hampered plucking earlier in the year.The country's 2012 tea output is expected to ease 1.5 percent to 973 million kg from a record 988.3 million kg in 2011.

Copyright Reuters, 2012