advertisement
Commodities

Tea price remains low as demand falters

Demand and price of tea in the global market has remained low in the past four months due to high volumes and Covid-19 restrictions
Demand and price of tea in the global market has remained low in the past four months due to high volumes and Covid-19 restrictions. FILE PHOTO | NMG  

Demand and price of tea in the global market has remained low in the past four months due to high volumes and Covid-19 restrictions that have affected supply chains of the commodity.

As a result of low demand in the world market, where Kenya sells up to 95 percent of its tea, a kilogramme of the beverage has remained low at Sh186 a kilo in the latest trading at the auction.

Buyers bought huge volumes of tea when the Covid-19 virus first hit the country in March, fearing that it would be difficult to get the commodity going forward because of restrictions imposed by different countries.

“Traders bought a lot of tea previously because of uncertainties that would result from the Covid-19 leading to low demand at the moment,” said Edward Mudibo, managing director East African Tea Traders Association (Eatta).

In the latest sale, quantities were up by a million kilos compared with previous trading.

advertisement

The low price has seen sellers remove more tea from the auction floor in the last one month.

advertisement