The price of tea at the Mombasa auction rose by the highest margin in the latest sale, inching closer to the Sh300 mark.
East African Tea Trade Association (Eatta) said the price of the commodity increased to Sh297 per kilogramme, a seven-year high, from Sh288 it fetched in the previous sale.
The auction recorded a sharp decline in volumes, which was lower by 1.8 million kilos when compared with the previous sale. This marked the first time that the quantities have declined since the beginning of the year.
“There was a fair demand for the 194,249 packages (12.7 million kilos) for sale with 152,684 packages (10.1 million kilos) being sold with 16.12 packages remaining unsold,” said Eatta.
The Tea Directorate has predicted a decline in volumes as the country enters the dry season, which will cut the production of green leaf on the farms as most growers prune their crops in preparation for rains.
Eatta said Pakistan packers lent useful support while their Egyptian counterparts showed reduced activity. There was good enquiry from Kazakhstan, Russia, Yemen and other Middle Eastern countries.
The good price that has been witnessed since August last year comes as a boost to farmers who could earn a good bonus in the current financial year should the trend continue up to June.