Tea prices remains even as volume grows

NAIROBI, Kenya, Jan 31 –Tea prices at the weekly Mombasa auction remained even selling at USD 2.55  despite an increase in volume compared to the previous sale.

A kilogram was sold at an average of USD 2.53 during the previous sale.

The East African Tea Traders Association noted that during the sale held on 24, 25, and 26 January, 14.1 million kilograms of the commodity were up for sale with only 12.9 million kilograms being sold.

This is an increase from 13 million kilograms which were up for sale in the previous auction where only 11.6 million kilograms sold.

“A good general demand was experienced for the 217,146 packages (14.1 million kilos) offered for sale with 182,146 packages (11.9 kilos) being sold while 16.12 percent of packages remaining unsold,” EATTA said.

Tea prices which have been on the rise since November come on the back of the minimum reserve price regime introduced by the government.

In July, KTDA introduced a minimum reserve price of Sh268 (USD2.43) per kilo of processed tea in a move aimed at cushioning smallholder farmers who were affected by the deteriorating market that had seen selling prices nearly slip below the cost of production.