Tea prices have hit a three-month low as the Mombasa auction continues to register an increase in volumes with produce from multinationals reentering the auction.
Market report from the East African Tea Traders Association (Eatta) shows a kilogramme on average traded at Sh281 this week, down from Sh295 in the last auction.
Eatta says the volume offered for sale was higher by 239,374 kilos compared to the previous week.
“Out of 162,135 packages (10,600,000kg) available for sale, 141,816 packages (9,289,198kg) were sold with 11.90 per cent packages remaining unsold,” said Eatta.
The Tea Directorate had indicated prices would remain low in the coming sales as farm volumes increased.
Supply from multinationals, after the strike that had paralysed activities was called off three weeks ago, has hit the price. Tea is currently in the peak season.