Indian tea extends losses on sluggish demand

MUMBAI, Jan 2 (Reuters): Average tea prices in India, the world's second-biggest producer, extended losses at this week's auction on sluggish demand and lower supply of premier quality leaf.
The CTC (crush-tear-curl) grade leaf was sold at 147.45 rupees ($2.33) per kg this week, down 4.6 percent from the previous auction, while prices of the dust grade dropped 2.5 percent to 148.93 rupees per kg.
"Supply of poor quality leaf has been rising. It is pulling down the average price, but prices are ruling firm for good quality tea," said a dealer based in the eastern city of Kolkata.
Prices at the latest auction (Dec.29-31)
(Quantity in kg; price in rupees per kg)
--------------------------------------------------------------
Variety    Offered quantity     Sold quantity   Average Price
---------------------------------------------------------------
CTC Leaf      3,224,391         2,503,634         147.45
CTC Dust      1,192,334           994,222         148.93
 
Prices in the previous auction (Dec.22-24)
---------------------------------------------------------------
Variety    Offered quantity     Sold quantity   Average Price
---------------------------------------------------------------
CTC Leaf      3,081,188             2,354,204  154.55
CTC Dust      1,295,840             1,035,679 152.75
Source: Calcutta Tea Traders' Association
($1 = 63.2950 Indian rupees)