Indian CTC tea price drops on higher supply; Dust grade up
Wednesday, 17 July 2013 00:01
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MUMBAI, July 15 (Reuters) - Prices of CTC tea in India, the world’s second-biggest producer, fell at last week’s auction on higher supplies, while dust grade rose on strong demand from local buyers amid concerns over lower production in the top producing Assam state.
The CTC (crush-tear-curl) grade was sold at 153.60 rupees ($2.56) per kg, down 1.93% from the previous week’s auction, while the dust variety was sold at 164.87 rupees per kg, up 1.1%.
“The supply of CTC increased at last week’s auction, but demand was slightly weak. Local buyers were actively buying dust variety,” said a Kolkata-based trader.
The country’s top tea producing Assam state received 45% lower rainfall than normal so far in the current monsoon season, which started on June 1, the weather department data showed, raising concerns over tea production.
India’s tea exports to Iran are likely to surge by around 50% in 2013 from the previous year as the sanctions-hit country increases purchases to replenish inventory and make use of one of its few remaining payment channels.
