COMMODITY TRADING

Tea auction prices drop but remains above 2-dollar mark

This week a kilo averaged $2.24 down from $2.26 last week.

In Summary

•The highest price this year remains $2.31(Sh257.80).

•The total volume traded this week was 328,319.00 kilos more than last week, the East African Tea Trade Association (EATTA)notes.

Farmers pick tea leaves in Othaya, Nyeri County.
Farmers pick tea leaves in Othaya, Nyeri County.
Image: EUTYCAS MUCHIRI

Tea prices at the weekly Mombasa auction dropped this week amid an increase in the volumes traded.

The prices however remain above the preferred two-dollar mark for the eighth straight week, signaling better returns for farmers as the government also continues with reforms in the tea sector to improve earnings.

At this week's auction, a kilo averaged $2.24 (Sh249.98) down from $2.26 (Sh252.22) last week.

The highest price this year remains $2.31(Sh257.80) with the commodity trading above two dollars for 11 times this year.

The total volume traded this week was 328,319.00 kilos more than last week, the East African Tea Trade Association (EATTA)notes.

A fair general demand prevailed for the 151,518 packages (10 million) kilos) available for sale with 116,600 packages (7.7 million kilos) being sold.

 23.05 per cent packages remained unsold.  

There was strong support from Pakistan Packers but at lower levels while Egyptian Packers, Kazakhstan, other CIS states, Yemen, other Middle Eastern countries and Bazaar showed useful enquiry but at lower rates,” EATTA managing director Edward Mudibo said.

Russia and UK reduced activity with Sudan quieter. Iran were quiet with Afghanistan subdued.

There was good support from Local Packers on account of price. Somalia were active at the lower end of the market,” said Mudibo.

Last week, Kenya Tea Development Agency Management Services Limited (KTDA-MS) said it had released Sh21.57 billion, being the second payment to farmers for the financial year ended June 30, 2021, commonly known as bonus.