Prices sharply down despite thin supplies

Tea prices fell sharply at the weekly auction in Chittagong Tuesday on tepid demand from local buyers despite a drop in supplies amid political turmoil, reports Reuters.
Bangladesh has been rocked by political unrest since anti-government protests turned violent in January over a disputed election a year ago.
Overall, prices fell sharply even though supplies were much lower from last week amid non-stop transport blockades, an executive with the National Brokers Ltd said. Demand from local buyers was also lukewarm as the continuing political uncertainty hurt business sentiment, he added.
Tea fetched on an average Tk 152.29 ($1.95) per kg, compared with Tk 174.89 at the previous sale, he said.
About 1.07 million kg tea was offered at the sole auction centre in Chittagong, of which 26 per cent remained unsold. In the previous auction, about 1.41 million kg were offered, with nearly 37 per cent remaining unsold.
Bangladesh's annual inflation rate rose in February, ending a declining trend since August, as renewed political unrest disrupted the country's supply chain, sending food and non-food prices higher despite a dip in global commodity prices.