Tea prices at the Mombasa auction rose marginally in this week’s sale on improved demand from Pakistan buyers even as volumes of the commodity continued to grow.
A kilo of tea on average fetched Sh247 up from Sh244 in last week’s trading.
East African Tea Traders Association (Eatta) said the volume offered this week increased by 539,303 kilos.
“There was strong and improved support from Pakistan Packers while Afghanistan and Egyptian Packers gave more interest with more inquiries from Kazakhstan,” says Eatta.
Pakistan is the number one buyer of the Kenyan tea purchasing worth Sh50 billion last, representing about 40 per cent of the total earnings from the beverage.
Prices at the auction have been dismal in the last two months in the wake of high volumes of tea offered for sale. The prices have lately touched a three-year low.
The auction had started on a high of Sh270 in the first sale of the year but the prices have in the last two months been oscillating between a two-year and three-year lows.