NAIROBI, Kenya, Feb 8 – Tea prices continued to dip at last week’s Mombasa auction remaining below the minimum reserve price for the second month running as demand remained irregular.
At the auction, a kilo averaged USD2.02(Sh252.70) a decrease of 3 USC from USD2.05(Sh256.45) in the previous week.
The Ministry of Agriculture set USD2.43 (Sh300.35) as the minimum price for a kilo of tea for all the Kenya Tea Development Agency (KTDA) teas in 2022 to safeguard farmers’ earnings.
The continued streak of low prices saw the amount of tea sold at the auction reduce by 839,604 kilos compared to the previous sale, as farmers reduced supply.
“There was an improved general demand for the 226,680 packages (15,176,767.00 kilos) on offer. 133,879 packages (8,752,750.00 Kilos) were sold with 40.94 per cent of the packages remaining unsold,” said he East African Tea Trade Association (EATTA) managing director Edward Mudibo.
In the week, Egyptian Packers showed more activity and were strong with useful support from Afghanistan while Sudan and UK lent strong but selective interest.
Yemen, other Middle Eastern countries, Iran and Russia maintained support while Pakistan Packers improved activity but were selective.
“There was reduced activity from Kazakhstan and other CIS states with Bazaar quiet. Local Packers maintained an interest in line with the price. Somalia lent good support at the lower end of the market,” said Mudibo.
