Tea traded at Sh274 per kilogramme this week, the same as it sold at in last week’s auction.
Tea production for 2017 is expected to drop by 11 per cent due to the effects of drought that have cut farm output.
Tea prices at the Mombasa auction held on to a two-year high after stabilising at the same value attained in last week’s sale.
Data from the Mombasa Tea Auction indicate that the commodity traded at Sh274 per kilogramme this week, the same as it sold at in last week’s auction.
The volume of tea offered for sale at the auction also decreased by 335,000 kilogrammes, marking a major dip on the quantities since the beginning of the year.
“Out of 131,634 packages (8,550,000 kilos) available for sale, 114,789 packages (7,432,061 kilos) were sold with 12.80 per cent remaining unsold,” said East African Tea Traders Association in a report.
Tea production for 2017 is expected to drop by 11 per cent due to the effects of drought that have cut farm output.
Agriculture and Food Authority says production of green leaf will drop from 473 million kilogrammes produced in 2016 to about 420 million kilogrammes this year.
The price is, however, expected to improve during the period as a result of the decline in production.
Tea yields for 2016 reached an all-time high of 473 million kilogrammes, which was 18.4 per cent higher than 399 million kilogrammes recorded in 2015.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
