Bangladesh unrest hits tea prices despite thin supplies

by Reuters
Tuesday, 24 March 2015 11:49 GMT

March 24 (Reuters) - Tea prices in Bangladesh fell sharply for a third week running at Tuesday's weekly auction amid tepid demand from local buyers despite dwindling supplies amid political unrest. More than 120 people have been killed and hundreds injured as a result of anti-government protests over last year's disputed election. Tea supplies were much lower because of transport blockades by protesters, but demand remained lacklustre because of the damage to business sentiment caused by the political uncertainty, an executive with National Brokers Ltd said. Bangladeshi tea fetched an average 134.62 taka ($1.73) per kg, compared with 142.06 taka at the previous sale, he said. About 419,543 kg was offered at the sole auction centre in Chittagong, of which nearly 8 percent remained unsold. In the previous auction, about 31 percent of 881,500 kg was unsold. Bangladesh's annual inflation rate rose in February as renewed political unrest disrupted the country's supply chain, sending food and non-food prices higher despite a dip in global commodity prices. Following are the results of the latest auction. Figures are in Bangladesh taka per kg. BROKENS Bold/Large Brokens not quoted Medium Brokens 130-150 Small Brokens 140-160 Plain Brokens 80-140 FANNINGS Best Fannings 220-230 Good Fannings 170-180 Medium Fannings 140-160 Plain Fannings 80-140 DUST Pekoe Dust not quoted Red Dust 95-160 Dust 108-170 Churamoni Dust 148-170 (Reporting by Ruma Paul in Dhaka; Editing by David Goodman)

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