76 years on, Ctg tea auction centre still commands the market

Seventy-six years ago, on July 16, 1949, the first tea auction in the region was held in Chattogram. That event marked the birth of what would become the nerve centre of Bangladesh's tea industry, the Chittagong Tea Auction Centre, which still handles the overwhelming majority of the country's tea trade.

At the time, it had already been more than a century since tea cultivation began in the region, starting in Chattogram in 1840 and later flourishing in Sylhet. Yet, for much of that period, tea produced in the region was shipped to auction centres in Kolkata and London. It wasn't until after the Partition of British India in 1947 that the need for a domestic auction centre became urgent.

With Chattogram emerging as a key port for exporting tea from Assam and Sylhet, local tea garden owners and British brokers moved to establish a dedicated auction facility.

On June 6, 1948, four British brokers—namely WF Cresswell, J Thomas, AW Figgis, and Carrit Moran—teamed up with local businessman Khan Bahadur Mujibur Rahman to form Pakistan Brokers Limited (later renamed National Brokers Limited). Just over a year later, they held the first auction in the port city, offering 3,000 chests of tea.

Even as newer auction centres were launched in Sreemangal of Moulvibazar in 2018 and Panchagarh in 2023 to provide easier access to farmers in those regions, the Chattogram centre has remained the dominant force

Since then, the Chittagong Auction Centre has grown into the country's most important tea trading platform. Under the guidance of the Bangladesh Tea Board and managed by the Tea Traders Association of Bangladesh (TTAB), weekly auctions are now held every Monday during the April-to-December tea season.

Even as newer auction centres were launched in Sreemangal of Moulvibazar in 2018 and Panchagarh in 2023 to provide easier access to farmers in those regions, the Chattogram centre has remained the dominant force.

Of the 87.29 million kilograms (mkg) of tea sold at auction during the 2024–25 season, a staggering 84.92 million mkg, or over 97 percent, was traded through Chattogram, according to Tea Board data. The auction centre in Sreemangal sold 1.24 mkg, and the one in Panchagarh sold 1.12 mkg of tea.

"Even though tea exports have slowed, the tea trade itself remains centred in Chattogram," said Kamran Tanvirur Rahman, chairman of the Bangladesh Tea Association. "Most of the buyers still prefer to purchase their tea here."

That preference is rooted in infrastructure, according to Md Yousuf, vice chairman of TTAB.

Chattogram is home to 16 licensed warehouses where tea from gardens in Sylhet, Chattogram, and Panchagarh is stored ahead of auction. In comparison, Moulvibazar has six and Panchagarh has three.

"The necessary infrastructure is already here—from warehousing to quality control to logistics," said Yousuf. "That's why Chattogram remains the first choice for growers and traders."

The Ctg centre also hosts the blending factories and storage facilities of major buyers, as well as the head offices of all seven broking firms authorised to conduct auctions. This built-in ecosystem keeps the centre efficient and attractive.

The auction process itself is a tightly coordinated system. Broking firms receive bulk tea from the gardens and collect samples of each lot to be sold. Professional tea tasters then examine the samples for leaf and liquor quality, perform grading, and set tentative valuations.

These samples are distributed to major buyers more than a week before the auction, along with a catalogue detailing expected prices.

Each Monday, more than 50 regular buyers—including major brands like Ispahani, Abul Khair, Meghna, HRC, TK Group, City Group (Bengal Tea), Lipton, and Danish—gather to bid. Smaller, loose tea buyers from across Dhaka, Chattogram, and other districts also take part.

Under government policy, tea growers must sell at least 75 percent of their produce via the auction system, while the remainder may be sold directly.

According to Ormaan Rafay Nizam, managing director of National Brokers Limited, the centre's continued relevance is no accident. "Chattogram was always the logical location, given its status as the country's main port," he said.

"Over the last 76 years, Chattogram Auction Centre has maintained its reputation, as all the seven broking firms keep providing services to both the producers and buyers with strong determination and integrity," he added.

Even as Bangladesh's tea industry faces new challenges, from reduced export volumes to shifting consumer demand, the Chattogram Tea Auction Centre endures as a rare constant. It's a place where supply meets demand, and a cup of tea begins its journey from leaf to market.