The minimum price policy, set in 2021 at US$2.34 per kilo, was originally introduced to shield farmers fromlosses.However, the regulation led to unintended consequences, including buyers avoiding Kenyan tea at theauction, causing a build-up of unsold stock.

In response, the industry has now reversed the decision, allowing the market to determine pricing..

With the abolition of the reserve price, all players in the tea value chain are urged to uphold ethicalpricing practices..

The Kenya Tea Development Agency (KTDA) announced plans to implement minimum qualitystandards for all Kenyan teas and this initiative is designed to enhance the globalappeal of Kenyan tea and increase export competitiveness..

The reintroduction of Direct Overseas Sales allows farmers to sell their produce directly from theirrespective factories, bypassing the traditional auction system..

Source: The Monitor (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka.