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Farmers Hopeful as Tea Prices Remain Consistent at Over $2 a Kilo

BY Soko Directory Team · October 1, 2021 08:10 am

KEY POINTS

During the week, a kilo of tea averaged 2.18 dollars (240.89 shillings) up from last week’s 2.10 US dollars (232.05 shillings) at the auction.

Tea prices closed the last week of September with a steady price that remained well above the two-dollar mark.

During the week, a kilo of tea averaged 2.18 dollars (240.89 shillings) up from last week’s 2.10 US dollars (232.05 shillings) at the auction.

The steady prices of tea signal a good hope for farmers, who have, for the past one year been seeing fluctuations in prices.

During the week, the farmers supplied more tea to the auction, largely due to the good prices. driving the total volume of tea traded to rise by 109,325 kilos.

“A good but irregular demand prevailed for the 125,919 packages (8.3 million kilos) available for sale with 95,320 packages (6.2million kilos) being sold,” said the East African Tea Traders Association (EATTA).

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Yemen showed the strongest support as Pakistan Packers showed strong inquiry. Other Middle Eastern and the UK also depicted strong interest.

“There was increased activity from Russia while Egyptian Packers and Sudan showed useful support with reduced interest from Kazakhstan, other CIS nations, and Bazaar,” said EATTA.

The association further went on to state that Iran and Afghanistan were subdued while local packers operated in line with the price. Somalia lent strong support at the lower end of the market.

The tea prices at the auction have been rising steadily for the last two months – a trend strongly attributed to the government’s directive on the reserve price.

The Ministry of Agriculture, in July, issued a directive to traders to pay a minimum reserve price for all Kenya Tea Development Agency teas at the auction.

The directive issuance was sparked by a sharp decline in prices that the government said was subjecting farmers to losses.

The good prices at the auction have given farmers hope of getting a good bonus at the end of the current financial year.

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