Commodities

Tea prices hit 9-month low at auction

tea

A woman plucks tea leaves at a farm. FILE PHOTO | NMG

geraldandae

Summary

  • Tea prices at the Mombasa auction declined to a nine-month low in the latest sale as the cost of the beverage continues to fall in the weekly trade.
  • Data from the East Africa Tea Traders Association (Eatta) indicates that the price of the beverage dropped to Sh193 last week from Sh199 in the previous sale.

Tea prices at the Mombasa auction declined to a nine-month low in the latest sale as the cost of the beverage continues to fall in the weekly trade.

Data from the East Africa Tea Traders Association (Eatta) indicates that the price of the beverage dropped to Sh193 last week from Sh199 in the previous sale.

The decline in cost saw 15.7 percent of the total tea brought at the auction withdrawn by traders because of low prices.

The price of the commodity at the auction had touched the two dollar mark last month for the first time 18 weeks before the value started falling again in subsequent sales.

Kenya’s tea is still facing demand challenge in the world market as the effects of Covid-19 are still taking a toll on Kenya’s beverage.

The lower prices have also been attributed to an increase in volumes in the world market. Kenya is the leading country in exports of the commodity with over 95 percent of the total tea produced locally shipped outside the country.