Tea prices at the weekly auction have remained below the preferred 2-dollar mark, even as government moves in to control stocks with an aim of stabilizing prices. This is up from 19 per cent sold the previous week as the recently introduced minimum reserve price starts to bear fruit. Tea prices at the auction have been on a downward trend since 2018, threatening to push farmers to losses as low selling prices cannot cover production costs. Besides the minimum price at the market, KTDA expects factories to reduce their production costs per kilo of made tea. The factories will also be expected to consistently produce high quality tea that fetches good prices in the market.

Source: The Star July 31, 2021 12:00 UTC