MUMBAI: Prices of CTC (crush-tear-curl) grade tea in India rose at last week’s auction on good demand, while prices of dust grade eased on higher supplies.

The price of CTC (crush-tear-curl) tea rose 2.4 per cent to 152.07 rupees per kg, while the dust variety eased 1.07 per cent to 150.92 rupees per kg.

“Supplies pressure pulled down dust. Demand was steady from local buyers,” an official at Calcutta Tea Traders’ Association said.

“Prices will remain stable in the coming weeks as winter season demand is picking up,” he said.

Tea consumption rises in India during the winter months as people prefer it over cold drinks. Tea plucking in India usually rises between July and October.

India’s tea production in the first nine months of the year fell 1.3 per cent year-on-year to 772.5 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 per cent to 973 million kg from a record 988.3 million kg in 2011.

The average price of Kenya’s top tea grade edged up to $4.12 per kg at an auction last week from $4.08 per kg in the previous week, as demand for the crop rose.

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