Dar es Salaam — The average annual tea price increased by 15 per cent at the world market during the year ending August 31, 2017, compared with that of a similar period in 2016.
That happened because demand for tea rose.
According to the Bank of Tanzania monthly economic review for September, the annual average tea price rose to $3 (Sh6,761) a kilo in August 2017 from $2.4 (Sh5,409) a kilo during the similar period in 2016.
However, the monthly world market price for the commodity decreased by 1.2 per cent, mainly due to increased production in India and Kenya.
A Tea Board of Tanzania report for 2016/17 shows that the country's tea exports fell by 22.43 per cent to 23,314.59 tonnes worth $41.32 million. The global tea prices rose from $2.5 (Sh5,635) a kilo in August 2016 to $2.7 (Sh6,085) in August 2017.
The total amount of tea sold through the Mombasa Auction during the year under review was 4,288 tonnes, an increase of 562 tonnes.
The average tea price at the auction rose by $0.10 per kilo from the $1.37 in 2016.
Meanwhile, the amount of processed tea decreased by 17.33 per cent in Tanzania, largely due to poor weather that adversely affected production.
It fell to 26,975 tonnes in 2016/17 from 32,628.68 tonnes in 2015/16.
Tea-growing areas are the Southern Highlands (Mufindi, Njombe and Rungwe), the North East Zone (Lushoto, Korogwe and Muheza) and Northwest Zone (Bukoba and Muleba).