Tea prices at the Mombasa auction declined to below two dollars in last week’s trading as the market continues to register poor performance in the recent sales. The volumes of tea at the auction went up to 8.8 million kilos from 8.2 million kilos.
According to the East African Tea Merchants Affiliation (Eatta), a kilo of the beverage declined to 199 shillings this week from 204 shillings within the earlier sale.
The regulator said that the low costs didn’t see a lot of the tea provided on the market withdrawn because it solely went right down to 14 % from 19 % beforehand.
Tea regulator projects that the price of the commodity, which has for the better part of the year been low, to rise to above two dollars, coming as a relief to farmers who have had to cope with reduced earnings in the 2019/2020 financial year.
Following the disruptions caused by the pandemic, the prices at the weekly auction have been on a downward trend in the last couple of sales in what has been attributed to low demand for the commodity in the world market.
Earlier in the month of July, COVID-19 restrictions dealt a huge blow on Kenya’s tea sector after it lost at least 10 million kilos.
According to the regulator, the drop in the tea was occasioned by a drop in the demand for the green leaf. However, the drop in demand also increased prices for the commodity.
The tea volumes for the month of July dropped to 36.5 million kilos from 46.3 million kilos recorded the previous month. The drop was attributed to the cold season that dominated the better part of the month.
The month of August was expected to have an increase even as the Directorate prepares to release the data. Tea is among Kenya’s leading exports and been hailed for earning the country revenue that is next to the horticulture sector.