Kenyan tea prices dip in Ramadan

NAIROBI: The average price of top grade tea from Kenya, the world's largest exporter of black tea, eased for the third successive weekly auction on Tuesday to $3.43 per kg from $3.55 per kg, brokers said.

Africa Tea Brokers said in its weekly report that 101,136 (6.38mn kg) packages were offered for sale compared with last week's 106,935 packages, while 24.6 percent remained unsold, down from 27 percent that found no buyers in the previous auction.

Best BP1s fetched $3.80-3.05 per kg compared with last week's $3.98-$3.12 per kg.

Best Pekoe Fanning Ones sold at $3.69-$3.40 per kg down from $3.74-$3.34 per kg week.

Naveed Ariff, general manager at Global Tea and Commodities Kenya, said Ramadan had affected buying patterns of tea in Pakistan, holding back prices.

Ariff expected prices to pick up once the Muslim fast ends late this month, he said.

Mombasa-based ATB said Pakistan Packers showed less support while Egyptian Packers were more active. Sudan, Yemen and other Middle Eastern countries maintained their interest.

Tea exports earned Kenya a record $1.16 billion last year, making the sector the country's top foreign exchange earner.

Copyright Reuters, 2011