January 9, 2020//-The heightening tension between Washington and Tehran is set to hurt tea earnings from Iran, industry players have warned, in what could add to the woes of a market where strict exchange controls have traditionally delayed payment for shipments.
Stakeholders in the tea sector yesterday petitioned the government to craft remedial measures amid a general slump in the global tea market.
Export of Kenya’s tea to Iran had already dropped to 532,715 kilogrammes in 2019, down from 590,111 in 2018, significantly cutting the forex earnings.
“Some bulk buyers will definitely be scared of selling the commodity to markets in Iran due to fears of attacks which will impact negatively on the sales,” said Gideon Tuwei, an expert in tea auction.
Tension has been rising between Washington and Tehran following the Friday killing of Iranian commander Qasem Soleimani in a drone attack on President Donald Trump’s order.
