EATTA Managing Director Edward Mudibo [Photo: CIO Africa]
Data from the East African Tea Trade Association (EATTA) shows that traders withdrew tea worth 851 million dollars from this week’s auction as prices continue to drop.
3.2 million KGs of tea was withdrawn on Tuesday as the price dipped to 2.3 dollars a KG, from 280 shillings in the previous sale, marking one of the largest quantities to have been withdrawn from the auction this year.
This comes as the prices have been dropping consistently in the last four weeks.
EATTA’s managing director Edward Mudibo says exporters to the Russian market also failed to place any orders in this week’s auction.
This is after Russia was sanctioned by the US and its European allies.
Some of the sanctions include the exclusion of Russia’s capital Moscow from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) which is a payment system that allows banks to transact with other financial institutions.
This has seen the Central Bank of Russia banned from trading in dollars.
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