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Commodities

Tea price hits 5-year low on high yields

Tea tasting at an auction
Tea tasting at an auction. PHOTO | GIDEON MAUNDU 

Tea prices at the Mombasa auction have dropped to lows last seen in 2014 as poor performance continues thanks to high volumes.

Lobby East African Tea Traders Association (Eatta) said the commodity traded at Sh208 per kilo from Sh219 in the previous sale, marking the lowest price recorded at the auction in the last five years.

In comparison with the same period last year, the average price has dropped from a high of Sh278 a kilo.

During trading on Tuesday, the volume rose by 1.3 million kilos to reach 10 million.

The Tea Directorate had anticipated the price to rise this month on assumption that the drought normally associated with January would cut supply, hence raising demand.

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Last week the auction registered a marginal increase of Sh2 as the volumes dropped from 9.1 million kilos to nine million during the second sale of this year. Eatta attributed a string of poor prices to increased volume in the market due to high production.

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