Better prices of tea on international market paints a positive outlook for the country’s traditional exports that account for 46.2 percent of the total exports.
According to National Agriculture Exports Board (NAEB) in its figure for the month of July indicated that tea prices increased 55 percent to $3.49 a kilo in July up from $2.25 in the same period under review in 2014.
This resulted into an increase by 27 percent of tea export earnings fetching $6 million in July, 2015 compared to $4.9 million in the same period in July.
But the crop’s export volumes went down to 1.8 million kilograms in July, 2015, from 2.2 million kilograms a change of 18 per cent in the same period 2014.
The positive outlook of tea exports is likely to drive the performance of the total exports which decreased by 6.2 percent in value to $ 275.28 million in the first half of 2015 from 293.61 million in the same period 2014.
The country’s traditional exports include tea, coffee, pyrethrum, minerals as well as hides and skins.
Moreover the country is struggling to close in the widening trade deficit that stood at 4.7 percent in the first half of 2015.
Nevertheless, decline in coffee earnings is likely to slow down the growth of the traditional exports after global prices of the crop declined by 2.8 per cent on annual basis thus posing down the crop’s contribution to exports.
According to National Agriculture Exports Board (NAEB), the country coffee earnings fell to $6.1 million in July,2015 from $7.7 million in the same period under review in 2014 with its kilo selling at $3.24 per kilo from 4.23 in July of 2014.