KENYA - The price of tea at the Mombasa auction declined marginally this week, reversing an improvement witnessed last week.
A kilogramme of made tea sold at Sh293 down from Sh298 traded at last week.
The volume of tea offered for sale increased by seven per cent from 8.4 million kilogrammes last week to nine million kilos this week. The volumes have been growing for the last 10 weeks with stakeholders expressing fears a glut in the market could lead to low prices.
Kenya Tea Development Agency (KTDA) has warned the ongoing rains are likely to impact negatively on the price of the produce this financial year.
“The average price for the week was Sh298, which was Sh5 lower than the past week. This week also recorded higher volumes traded at the auction at 9,001,013kg which was higher by 582,594 kilos compared to the last auction,” said Edward Mudibo, managing director East African Tea Traders Association.
The ongoing rain, is however, may cut down the production as a result of the wet weather that affects the tea bushes.
Peter Munialo, a factory manager at the KTDA says production in areas where the rains have not been high has gone up.