Tea prices dipped further at this week’s Mombasa auction dropping below the minimum reserve price amid reduced demand for the commodity.
At the auction, a kilo averaged USD2.34(Sh285.48), ten cents down from USD2.44(Sh299.50) in the previous week.
The Ministry of Agriculture set $2.43 (Sh294) as the minimum price for a kilo of tea for all the Kenya Tea Development Agency (KTDA) teas last year.
The low tea prices saw volumes traded decline by 465,080 kilos to continue on a downward trend for the last month.
“There was a fairly good general demand for the 211,155 packages (14,214,109.00 kilos) on offer. 131, 319 packages (8,772,186 Kilos) were sold with 37.8 per cent of packages remaining unsold,” the East African Tea Trade Association (EATTA) managing director Edward Mudibo.
In the week, Kazakhstan, other CIS states and Sudan lent improved but selective support, with Pakistan Packers, Bazaar and Afghanistan maintaining useful activity but at lower levels.
Egyptian Packers, the UK, Yemen, and other Middle Eastern countries reduced interest, while Iran showed more enquiry.
Russia was less active, while Local Packers were outbid. Somalia maintained activity at the lower end of the market.
Read also; Prices at Tea Auction Decline Slightly to $2.43 Per Kg.
