India CTC tea prices rise on higher demand; dust falls

MUMBAI: Prices of CTC grade tea in India, the world's second-biggest tea producer, rose at last week's auction on strong demand, while prices of dust variety edged lower on higher supplies.

The CTC (crush-tear-curl) grade was sold at 153.28 rupees ($2.79) per kg, up 1.8 percent from the previous week's auction, while prices of the dust variety fell 1 percent to 162.66 rupees per kg.

"Local buyers were actively buying all grades. Supplies have also improved. That weighed on dust prices," said an official of the Calcutta Tea Traders' Association.

India's tea exports in the year ended March 31 rose about 3 percent from the previous year to 220.46 million kg as shipments to sanction-hit Iran rose after trade started in rupee.

The country's tea production from April 2012 to March 2013 rose 2 percent from a year earlier to a record high of 1,116.67 million kg, the state-run Tea Board said.

India exports CTC tea mainly to Egypt, Pakistan and the UK, and the premium orthodox variety to Iraq, Iran and Russia.