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Commodities

Relief for farmers as tea prices rebound at Mombasa sale

Good news for farmers as tea prices jump. FILE PHOTO | NMG
Good news for farmers as tea prices jump. FILE PHOTO | NMG 

Tea prices at the Mombasa auction have rebounded in the second sale of the year, hitting a three-week high on Tuesday.

A kilogramme of tea on average traded at Sh286 in last week’s sale, up from Sh276 in the previous auction, which is a relief for farmers after a streak of low prices.

The volumes offered for sale during the auction declined by over half a million kilogrammes, marking the second time in a row the volumes have dipped. Last week the quantities dropped by 886,998 kilogrammes.

At Sh286 per kilo, the price is still higher compared with the same period last year when tea traded at Sh279. The Tea Directorate had anticipated the volumes would increase in the coming sales following a good weather witnessed in November last year that saw a growth in green leaf delivery at the factories.

“Out of 165,476 packages (10,600,000 kilos) available for sale, 147,789 packages (9,525,703 kilos) were sold with 10.68 per cent of packages remaining unsold,” says a report from the auction.

The directorate had said last year that there was a likelihood of prices firming in the coming sales resulting from a dry spell that started last year December, which is expected to cut production and increase demand.

Tea volumes have been on the rise following favourable weather that has seen production rebound after a sharp decline in the first quarter of last year.

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