May 4, 2006	Thursday	Rabi-us-Sani 5, 1427

NAIROBI, May 3: Kenyan tea prices were firmer at this week’s auction as buyers bought up tea to meet orders they were previously unable to handle due to a drought-induced shortage, brokers said on Wednesday.

The east African country is currently emerging from a severe drought that hit key exports such as tea and coffee. Tea production fell for most of the first quarter because of the lack of rains but improved in March to 19.8 million kg from 11.6 million in February.

Good demand prevailed for the 78,511 packages on offer at irregularly firm to dearer rates, a market report by the Africa Tea Brokers said, adding that 5,015 of the packages were left unsold. The UK, Pakistan and the Egyptian Packer Sectors again lent very strong support while Yemen and other Middle Eastern countries showed more enquiry, the report added.

The exporter said he expected good prices to prevail in the coming months. Kenya is a leading exporter of black tea.—Reuters