Tea prices in India eased at last week's auction due to an improvement in supplies, although good domestic demand capped the downside, dealers said. The price of CTC (crush-tear-curl) tea dropped 3 percent to 144.39 rupees per kg, while the dust variety fell 1.36 percent to 149.14 rupees per kg. "Supplies are rising as plucking has gained pace in north-eastern India. In next few weeks supplies will remain on higher side," said an official at Calcutta Tea Traders' Association. Tea plucking in India, the world's second-biggest producer, usually rises between July and October. The average price of Kenyan top grade tea rose to $4.13 per kg at an auction last week, from $3.97 kg in the previous auction. India's tea production in the first seven months of the year fell 4.2 percent year-on-year to 470.7 million kg as dry weather in Assam hampered plucking earlier in the year. The country's 2012 tea output is expected to ease 1.5 percent to 973 million kg from a record 988.3 million kg in 2011 as drought affected the crop in the first six months of the year. India exports CTC tea mainly to Egypt, Pakistan and the UK, and the premium orthodox variety to Iraq, Iran and Russia. Source: in.reuters.com/article/2012/09/24/india-tea-auction-idINL4E8KO4IR20120924
