Indian tea eases as supply of premier grade leaf drops
Tuesday, 27 May 2014 00:00
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REUTERS: Average tea prices in India, the world’s second-biggest producer, eased at last week’s auction on a slight drop in supplies of premier grade leaf.
The CTC (crush-tear-curl) grade leaf was sold at 159.11 rupees ($ 2.73) per kg, down 3% from the previous auction, while prices of the dust grade rose 3.2% to 168.99 rupees per kg.
“Supplies of fine quality leaf were slightly lower. That’s why the average price came down, but overall demand was robust,” said a Kolkata-based dealer.
Tea output in India’s top-producing Assam state is likely to fall by 10% in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world’s biggest black tea producer.
