This archive report was first published on 26 September 2019.
Published on September 26, 2019, the East African Tea Trade Association has warned that tea prices are likely to drop next year due to economic turmoil in key markets, including Sudan, Pakistan, and Iran.
The association's Managing Director, Edward Mudibo, has proposed that the government removes taxes and levies on tea to cushion farmers from low prices.
However, players in the tea trade argue that tea prices are dictated by market forces at the Mombasa tea auction, which is transparent with minimal room for price manipulations.
Iran is facing US sanctions, while Pakistan and Sudan are experiencing currency devaluations, and Brexit uncertainty is also projected to hurt tea prices.
Tea farmers are calling on the government to consider removing taxes and levies on tea to reduce the cost of production and cushion farmers from low prices.
