Nearly 1.9 million kg of tea were offered at Bangladesh's sole auction centre in Chittagong, with 1.75 percent unsold, compared with 2.61 percent unsold in the previous auction when more than 2 million kg was offered. "Demand was buoyant for all varieties with good liquoring types advancing further in price," National Brokers said in its market report. "Blenders were very active and accounted for the sharp rise in price. Loose tea buyers were outpriced."
Around 2 million kg will be offered at the next auction on January 1. Tea sold at the Chittagong auction is mostly bought by domestic buyers. Bangladesh's tax authority imposed a 25 percent duty on tea imports in January to safeguard the local industry. The south Asian country produces 60 million kg of tea a year against demand of 56 million. Tea consumption there is rising by 4.5 percent annually, in line with steady economic growth.