The average price of tea sold at the Mombasa auction has dropped to a record low of US$2.16 (Sh254), its lowest since the start of the year, a price way below the minimum price of Sh280 set by the Government in 2021.
Tea prices have been on the decline in the past five weeks in the wake of the Russia-Ukraine war which has hurt tea demand, Russian traders have remained quiet at the auction for several weeks.
Data from the East Africa Tea Trade Association shows that the prices dropped from US$2.23 during the previous sale with the total volume offered for sale also marginally reducing by 620,719 to 8,887,849.
During a similar period a year ago, the total volume sold was 10,341,937 signaling a depressed harvest by farmers hit by poor weather.
EATTA said that 13,246,614.00 kilos were available for sale but only 8,887,849 Kilos were sold leaving 34% of packages unsold.
“There was a fairly good demand with improvement in some markets but at irregular rates with Egyptian and Pakistan traders showing good interest,” EATTA Managing Director Edward Mudibo said.
“Yemen, other Middle Eastern countries, Kazakhstan, other CIS states, and the UK lent more support. Sudan was active while Bazaar and Afghanistan showed reduced inquiry,” he added.