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Commodities

Prices of tea remain flat at Mombasa sale

A tea auction in Mombasa. FILE PHOTO | NMG
A tea auction in Mombasa. FILE PHOTO | NMG 

Tea prices at the Mombasa auction remained flat at this week’s sale compared with the previous trading even as the volumes offered declined.
A kilogramme of tea on average traded at Sh282, the same as last week.

The volumes offered for sale during the auction went down by 138,859 kilos marking the eighth time in a row that the quantities have dipped. At Sh282 per kilo, the price is slightly lower than the same period last year when it traded at Sh281 on average.

“Out of 144,742 packages (9,400,000 kilos) available for sale, 128,902 packages (8,327,744 kilos) were sold with 10.94 per cent of packages remaining unsold,” says a report by East African Tea Traders Association.

The tea directorate had anticipated that the volumes would start coming down this year following a dry weather witnessed in December last year that has seen a slight decline on quantities of green leaf delivered to the factories.

Higher tea prices at the Mombasa auction pushed farmer’s earnings to Sh129 billion last year, defying harsh climatic condition that saw production of green leaf decline.

The earnings were attributed to an increase in price per kilo of made tea and a stable exchange rate against the US dollar.

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