Increase in supply has caused tea prices at the weekly Mombasa auction to fall to a long time low, with one kilogram going at an average KSh202, down from KSh206 in previous sales.
As a result of the low prices, traders withdrew 14% (1.9 million kilograms) of the offered tea from the market in anticipation of high prices in the future.
Thus, with the withdrawal, only 10.8 million kilograms of tea were sold, compared to 11.4 million kilograms sold the previous week.
According to the Kenya Tea Development Agency (KTDA), the decline in prices was largely attributed to increased production of green leaf by 4% so far.
Tea Prices for the Mombasa Auction. Image Courtesy: Africa Tea Brokers
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