Nairobi — Tea prices dipped further at the last Mombasa auction week this year remaining below the minimum reserve price amid reduced demand for the commodity.
At the auction, a kilo averaged USD2.22 (Sh273.84) ten cents down from USD2.32 (Sh286.17) in the previous week.
The Ministry of Agriculture set USD2.43 (Sh294) as the minimum price for a kilo of tea for all the Kenya Tea Development Agency (KTDA) teas last year to safeguard farmers' earnings.
Despite the low prices, volumes traded increased by 404,680 kilos compared to the previous auction.
"In this last sale of the year, there was good general demand at irregularly easier levels for the 232,540 packages (15,496,597.00 kilos) available for sale. 160,820 packages (10,653,517.00 Kilos) were sold with 30.84 per cent of the packages remaining unsold," said the East African Tea Trade Association (EATTA) managing director Edward Mudibo.
In the week, Pakistan Packers, Bazaar, and Afghanistan showed good support but at lower levels with a useful inquiry from Yemen and other Middle Eastern countries.
Kazakhstan, other CIS states, and Sudan were active but selective while the UK maintained interest.
"Russia lent more support with Egyptian Packers less active. Iran was absent while Local Packers reduced inquiry. Somalia was active at the lower end of the market," said Mudibo.
