Rwanda tea prices rose steeply at the Mombasa auction market last week as regional supplies of the commodity fell due to bad weather, which affected production.Figures from the National Agriculture Export Promotion Board (NAEB) suggest that prices of primary grade teas gained by nearly a third to US$3.8 per kg compared to an average US$2.8 per kg that was registered last year.“Generally, supply has been low due to bad weather,” Ndambe Nzaramba, the Deputy Director General at NAEB said, adding that prices were also driven by high quality of Rwanda tea.With rising prices, farmers are set to enjoy higher dividends and bonuses, he said.Government is in the process to draft a strategy that will enable farmers enjoy the dynamic prices and the auction from the old system of fixed prices through out the year. The strategy is in advanced stages of implementation and it is expected to boost farmers’ income.Anthony Butera, of Tea Group Investments, said the rise in tea prices will translate into higher revenues for farmers through quick payment and bonuses “Prices are always a function of demand and supply, and we have experienced drought in the region through the last three months driving the hike in prices,” he said.Butera added that Rwanda has best prices for highest grade on factory level and more or less prices with Kenya Tea Development Agency (KTDA) on other tea grades.Traders from Kenya, Rwanda and Burundi are expected to benefit most, thanks to high quality crop that is attracting better prices from the international market.Figures from the central bank indicate that Rwanda’s tea exports as of between January and May this year were valued at US$8 million compared to US$5 million in same period last year.
