Grapevine

Tooro tea farmers frustrated as prices remain low

Uganda's tea industry saw a slight price surge at the recent Mombasa Tea Auction, with the national average climbing to $0.98 (Shs3,605.45) per kilogramme, up from $0.87 (Shs3,200) in August.

The recent auctions at the Mombasa Tea Auction, closing on September 17, revealed a notable increase in prices for Ugandan tea, with the average price reaching $0.98 per kilogramme according to Mombasa Tea Auction Average Hammer Prices, Auction No. 2024/38, which included the performance of 37 Ugandan tea factory marks.

However, for tea processing factories in Tooro Sub-region, this increase has done little to push them past the crucial $1 mark per kilogramme, compared to other sub-regions of Ankole and Kigezi that have consistently sold their processed tea above a dollar.

Mr Onesimus Matsiko, the chairperson of the Uganda Tea Outgrowers Association (UTOA), at the weekend said the average price of $0.98 per kilogramme represents an increase of about 11 cents compared to a similar period in the third week of August when prices stood at $0.87 per kilogramme and 12 cents higher than Uganda’s average price of $0.86 (Shs3,163.97) per kilogramme one year ago.

This increase implies that at $0.98 per kilogramme, the price of processed tea in Ugandan currency rose to Shs3,631.79 per kilogramme, compared to Shs3,224.14 in August and Shs3,187.08 a year ago.