India Tea Price Watch

April 17, 2021

Sale 15 was a quiet week in the auctions even as the second wave of COVID rages across the country, and elections are ongoing in many tea-growing states. Neither the weather nor prices saw much change from last week. This was also the week of the lunar new year, celebrated in several parts of the country. Guwahati auctions were closed as the state celebrated Bihu.

PRICES FOR SALE 15

Kolkata auctions saw another week of lower-than-expected sales for CTC while Orthodox leaf and dust did better. There was no Darjeeling on offer.

In Kochi, there was good demand for orthodox leaf and CTC leaf with about 80% of the offering sold. Demand for orthodox leaf was from exporters to CIS countries and the Middle East while the local market was in play for CTC leaf. However, the absence of Supplyco, the biggest buyer, for the third week running has impacted CTC dust prices. Only 59% on offer was sold. Prices for the top end Nilgiris whole leaf was down from Sale 14. This is seen as partly market correction as more teas are arriving from the gardens so buyers are willing to wait for better quality. It also points to a subdued market against Covid. Overall, in the south, the prices were not significantly different from Sale 14. In Coonoor, a limited quantity of green tea was on offer and all sold.

FOCUS: KOCHI AUCTIONS

The Kochi auction centre handles tea from across south India. Over the last few weeks, Kochi has been one of the busiest tea auctions. We spoke to industry sources for their views on how the auctions have been progressing so far. They say that despite the pandemic, the market has been good, especially for CTC Leaf and Dust. Prices have been up by at least INR 35-40 over 2019. The south also benefited from the drop in production in the north last year. Additionally, 2020 also saw a high at-home consumption which, in India, points to CTC tea. What has been affected is loose tea sale as the hospitality market took a beating. Kochi saw a good first quarter in 2021. In April, we are seeing a market correction as the north Indian markets have also opened. Overall, as one industry source put it, “the bottom has gained more than the medium and best categories.”

India Tea Price Watch – April 16, 2021

Source: India Tea Board | India Tea Auctions

*New audio uploaded 4-19-2021

Tea Price Report

Price volatility is an ongoing concern, which is why Tea Biz publishes the weekly Tea Price Report. The report tracks average prices at major tea auctions and lists prices for specific types of specialty tea, drawing on many sources including the China Tea Marketing Association which provides a benchmark for the 10 teas from the world’s largest tea exporting country. Listen free to the weekly summaries below and click Price Watch for a full report analyzing trends with additional data sets and graphs. Si Chen researches and Dan Bolton writes the Weekly China Price Watch. Photo of white tea drying in the sun in Fujian courtesy China Tea Marketing Association (CTMA).

China Price Watch

Weather is ideal in Jiangsu and Zhejiang, two of China’s 10 tea representative tea growing regions with good in three regions. The remaining five regions report fair weather with no impediments to the harvest. The forecast for 2021 is for clear skies and warm spring with drier than normal conditions for the season overall. The pattern is similar to spring 2020 which started off well for China’s farmers with the driest planting season in nine years, but then things went south with the heat and too much rain. Near-record heat followed in 2020. This year’s core summer months across China look to be much drier, trending toward the driest in 11 years, according to Weather Trends 360.

Despite lockdowns and safety precautions due to COVID-19, China harvested 2.97 million metric tons of tea in 2020, up 7.1 percent over 2019, according to the National Bureau of Statistics of China’s Statistical Communiqué on 2020 National Economic and Social Development.

April 13th, 2021

*N/A indicates insufficient quantities harvested to establish a reliable price range.
Source: China Tea Marketing Association  Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. China rates weather and labor conditions on a scale of 1-5, with 5 indicating ideal. Special thanks to Si Chen in Beijing for translating.
Copyright 2021 Tea Biz www.tea-biz.com

 April 6th, 2021

Plucking started early and warm weather is expected to extend the harvest. In Fuding white tea is drying in the sun. Xianjing Cao, co-founder Taimu Tea Valley, writes that the purchase price of fresh tea leaves in 25% -35% higher compared to the same period in 2020. According to a report from local supplier Pin Pin Tea, last year’s drought in Fuding resulted in a lower germination rate, and a large number of tea buds were frostbitten due to the extremely cold winter. Both factors lowered tea yield. The combination will result in a significant increase in the price of Fuding White Tea especially the Silver Bai Hao Yinzhen (Silver Needle), writes Cao.

Plucking is at 50 percent of the Anji Bai Cha tea gardens in Zhejiang. Anji Bai Cha is a green tea that takes its name from a tender spring bud that presents as white in color. Anji County this year is expected to produce 2,000 metric tons. Plucking is underway in eight of 10 major tea producing regions.

Despite lockdowns and safety precautions due to COVID-19, China harvested 2.97 million metric tons of tea in 2020, up 7.1 percent over 2019, according to the National Bureau of Statistics of China’s Statistical Communiqué on 2020 National Economic and Social Development.

April 6th, 2021

Source: China Tea Marketing Association  Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. China rates weather and labor conditions on a scale of 1-5, with 5 indicating ideal. Special thanks to Si Chen in Beijing for translating. Copyright 2021 Tea Biz www.tea-biz.com

March 30th, 2021

Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. China rates weather and labor conditions on a scale of 1-5, with 5 indicating ideal conditions. Harvest conditions were rated 3 or 4 in four growing regions indicating the harvest is underway with no extreme weather events. Ideal conditions (5) were reported in Suzhou and Huangshan, Anhui. The harvest has yet to being in three growing regions where conditions remain unfavorable. Source: China Tea Marketing Association | Special thanks to Si Chen in Beijing for translating. | Copyright 2021 Tea Biz Tea Price Report www.tea-biz.com

March 23th, 2021

Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. Source: China Tea Marketing Association | Special thanks to Si Chen in Beijing for translating. | Copyright 2021 Tea Biz Tea Price Report www.tea-biz.com

March 17th, 2021

Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. Source: China Tea Marketing Association | Special thanks to Si Chen in Beijing for translating. | Copyright 2021 Tea Biz Tea Price Report www.tea-biz.com

Send comments and suggestions on how to improve this report to: Dan Bolton

India Tea Price Watch

April 10, 2021

Drought like conditions plague Darjeeling, Kangra, parts of Assam and the mood is understandably gloomy. Meanwhile hailstorms in Assam over April 10th have severely affected several tea growing districts.

PRICES FOR SALE 14

The much-awaited opening of the Kolkata auctions was not on the expected high note. Only 55% of tea on offer was sold. Guwahati saw better responses and prices to Orthodox leaf and dust, with 100% dust sold while Siliguri focused on CTC leaf and dust. A green tea from Donyi Polo garden from Arunachal Pradesh, sold for Rs 612 making it the highest priced this week.

In Kochi, Supplyco was missed, and the CTC Dust market found few takers leading to prices dropping between Rs 5 and Rs 10. Orthodox dust did better than CTC dust, at 86% sold with upcountry buyers and local market showing interest. Orthodox leaf also did well with 80% sold. CIS countries and Middle East were the main buyers. Nilgiri tea fetched good prices at a low of INR 230 and a high of INR 311.

In Coonoor and Coimbatore, prices were similar. Coonoor saw a high volume of tea on offer this week. Topping the prices was Homedale Estate’s Red Dust tea grade, bought for ? 305 a kilo. In Coonoor, a limited quantity of green tea was on offer and all sold.

FOCUS: TRIPURA

News of an orthodox black tea from Tripura that sold for INR 12,500/- a kilo made it to the news this week. The tea, part of the Neermahal brand from the Sovamoyee Agro Industries and Allied Services, was sold privately. The buyer is Amritsar-based Shahjada Export and the tea will be shipped to Denmark and the Gulf countries. 

Sumedha Das, who runs Sovamoyee, is a fourth generation tea planter. In May 2020, she leased a tea processing factory from the government’s Department of Industries and Commerce. While she produces CTC and green tea, she is actively pursuing orthodox and speciality tea manufacture this year.

Sumedha made 5.5 kilos of the Neermahal speciality black tea this season. She says the plucking was done after the rains in the first week of April. Since leaves are sourced from small farmers, Sumedha personally monitored the plucking to ensure that only one leaf and bud were plucked. The leaves were put through a hard wither and oxidation carefully monitored. The entire batch was handrolled by Sumedha and her team of eight. Her entire stock has been sold.

Tripura state is a significant tea growing district, bordering Assam within India and Bangladesh as its international border. The tea industry here is over 100 years old. Today, the state has 58 tea gardens, of which 42 are privately owned, three are run by the Tripura Tea Development Corporation and 13 are operated under cooperative societies. There are around 3,000 small tea growers. The terroir is similar to that of Cachar in Assam and well suited for tea cultivation. Much of Tripura’s tea is sold in the Kolkata and Guwahati auctions and used for blending, which is why the news of speciality tea is of significance.In recent years, Tripura’s tea farmers have been experimenting with speciality tea production and seeing encouraging returns. A white tea from the 100+year old Fatikcherra estate sold for INR 5,500 per kilo in 2019. The record prices will offer tea growers here a reason to focus on quality and innovation. 

*New audio uploaded 4-13-2021

Tea Price Report

Price volatility is an ongoing concern, which is why Tea Biz publishes the weekly Tea Price Report. The report tracks average prices at major tea auctions and lists prices for specific types of specialty tea, drawing on many sources including the China Tea Marketing Association which provides a benchmark for the 10 teas from the world’s largest tea exporting country. Listen free to the weekly summaries below and click Price Watch for full report analyzing trends with additional data sets and graphs. Si Chen researches and Dan Bolton writes the Weekly China Price Watch. Photo of white tea drying in the sun in Fujian courtesy China Tea Marketing Association (CTMA).

China Price Watch

Weather is ideal in two of China’s 10 tea representative tea growing regions and good in three regions with fair conditions in the remaining five regions. The 2021 will present much drier conditions for the season overall compared to 2019, the wettest in 21 years across China. Spring 2020 started off well for China’s farmers with the driest planting season in nine years, but then things went south with the heat and too much rain. Near record heat followed in 2020. This year’s core summer months across China look to be much drier, trending toward the driest in 11 years, according to Weather Trends 360.

Despite lockdowns and safety precautions due to COVID-19, China harvested 2.97 million metric tons of tea in 2020, up 7.1 percent over 2019, according to the National Bureau of Statistics of China’s Statistical Communiqué on 2020 National Economic and Social Development.

April 13th, 2021

Source: China Tea Marketing Association  Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. China rates weather and labor conditions on a scale of 1-5, with 5 indicating ideal. Special thanks to Si Chen in Beijing for translating. Copyright 2021 Tea Biz www.tea-biz.com

April 6th, 2021

Plucking started early and warm weather is expected to extend the harvest. In Fuding white tea is drying in the sun. Xianjing Cao, co-founder Taimu Tea Valley, writes that the purchase price of fresh tea leaves in 25% -35% higher compared to the same period in 2020. According to a report from local supplier Pin Pin Tea, last year’s drought in Fuding resulted in a lower germination rate, and a large number of tea buds were frostbitten due to the extremely cold winter. Both factors lowered tea yield. The combination will result in a significant increase in the price of Fuding White Tea especially the Silver Bai Hao Yinzhen (Silver Needle), writes Cao.

Plucking is at 50 percent of the Anji Bai Cha tea gardens in Zhejiang. Anji Bai Cha is a green tea that takes its name from a tender spring bud that presents as white in color. Anji County this year is expected to produce 2,000 metric tons. Plucking is underway in eight of 10 major tea producing regions.

Despite lockdowns and safety precautions due to COVID-19, China harvested 2.97 million metric tons of tea in 2020, up 7.1 percent over 2019, according to the National Bureau of Statistics of China’s Statistical Communiqué on 2020 National Economic and Social Development.

April 6th, 2021

Source: China Tea Marketing Association  Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. China rates weather and labor conditions on a scale of 1-5, with 5 indicating ideal. Special thanks to Si Chen in Beijing for translating. Copyright 2021 Tea Biz www.tea-biz.com

March 30th, 2021

Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. China rates weather and labor conditions on a scale of 1-5, with 5 indicating ideal conditions. Harvest conditions were rated 3 or 4 in four growing regions indicating the harvest is underway with no extreme weather events. Ideal conditions (5) were reported in Suzhou and Huangshan, Anhui. The harvest has yet to being in three growing regions where conditions remain unfavorable. Source: China Tea Marketing Association | Special thanks to Si Chen in Beijing for translating. | Copyright 2021 Tea Biz Tea Price Report www.tea-biz.com

March 23th, 2021

Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. Source: China Tea Marketing Association | Special thanks to Si Chen in Beijing for translating. | Copyright 2021 Tea Biz Tea Price Report www.tea-biz.com

March 17th, 2021

Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many different farms to determine a range. In general the lower range describes teas available in quantity. The high range is influenced by scarcity but in China, many desirable, high-value teas are grown in large quantities. Averages are calculated in Chinese Yuan and converted to USD. Export prices vary greatly from the domestic averages listed above. Source: China Tea Marketing Association | Special thanks to Si Chen in Beijing for translating. | Copyright 2021 Tea Biz Tea Price Report www.tea-biz.com

Send comments and suggestions on how to improve this report to: Dan Bolton

Tea growers proceed cautiously in China where protective gear is required along with distancing protocols. The infection rate is very low in the tea lands and yield per hectare has returned to normal levels. Harvest and export totals will likely exceed 2020. Photo courtesy Pin Pin Xiang Tea Company.

Export

In 2020, China exported 348,800 tons of tea, a year-on-year decrease of 4.86% (17,700 tons less). This is the first time since 2014 for tea export volume to see a decrease.

In 2019, Asia and Africa account for more than 80% of total exports. Sorted by volume, the main exporting countries were Morocco, Uzbekistan, the United States and Ghana. Morocco accounts for 22.7% of total exports.

In the first six months of 2020, tea trade with Morocco, Uzbekistan, Ghana and other countries was generally stable and increased to varying degrees; tea exports to the United States fell sharply, down 33.4% year-on-year. Pandemic, poor logistics, unstable demand, and implementation of inbound cargo control measures are the main factors affecting the execution of tea orders or the shrinking of new orders.

Details: by Tea Types

All types of tea, with puer being the only exception, has seen a decrease in export.

• Green tea sold 293,400 metric tons, which is 84.1% of total export volume (1,054 tons less, 3.5% decrease).
• Black tea sold 28,800 tons, which is 8.3% of total tea export (6,392 tons less, 18.2% decrease).
• Wulong (oolong) tea sold 16,900 tons, which is 4.9% of total export (1,200 tons, 6.6% decrease).
• Floral/herbal tea sold 6,130 tons, which is 1.8% of total export (359 tons less, 5.5% decrease).
• Puer tea sold 3,545 tons, which is 1% of total export (759 tons increase, 27.2% increase).

In 2020, China’s tea exports totaled US$2.038 billion (CNY?14.164 billion), an increase of US$18 million over 2019, a slight increase year-on-year; it has continued to grow since 2013, with an average annual compound growth rate of 7.27%. Affected by the decline in volume, the growth rate will slow down significantly in 2020.

In 2020, the average export price of Chinese tea was US$5.84/kg, a year-on-year increase of US$0.33/kg. Since 2013, the average tea export price has continued to grow, with an average annual compound growth rate of 6.23%, which has exceeded the 4 USD/kg and 5 USD/kg mark. According to the current compound growth rate, it is expected to exceed 6 USD/kg in 2021.

Workers harvesting white tea cultivars at Pin Pin Xiang tea farms in Fujian Province. Photo courtesy Pin Pin Xiang Tea Company.

Import

In 2020, the total value of China’s imported tea is 1.245 billion yuan.

Production

(unit: thousand tonne)

In 2020, China’s tea production was 2.97 million tons, an increase of 192,800 tons over the previous year, an increase of 6.94% year-on-year. The land and production of tea gardens continued to increase. 2020 data not available yet.

Details: by province

Zhejiang Province:

In 2020 tea production was 191,000 tons, with value of 23.85 billion yuan, an increase of 0.5% and 5.8% respectively over the previous year.

Guizhou Province:

In 2020, tea production was 436,000 tons, with value of 50.38 billion yuan, an increase of 8.7% and 11.7% respectively year-on-year. The total tea-planting area in Guizhou Province is 7 million mu (closely tie #1 with Yunnan), accounting for 15.2% of the country’s total tea planting land. In 2020 Guizhou exported 6577.7 tons of tea with a value of 231 million US dollars, a year-on-year increase of 91.7%; 3.4 million people worked in the tea industry, with an annual per capita income of 12,351 yuan. (Guizhou has been traditionally one of the poorest provinces in China, unlike Zhejiang or Guangdong).

Guangdong Province:

Tea production in Guangdong Province was 128,000 tons in 2020 (=4.3% of total China tea production). In 2020, the export value of Guangdong tea was 79,506,100 US dollars, and the import value was USD 21,588,200 dollars.

Fujian Province: In 2020, Fujian Province’s tea production was 461,000 tons, a year-on-year increase of 15.5% compared to 2019. In 2020, the export value of Fujian tea was $418 million U.S. dollars.

Yunnan Province:

no 2020 data. In 2019, Yunnan Province’s tea production was 431,000 tons, ranking second in China. Tea planting area was 6.76 million mu. The export was 7,958.57 tons, accounting for 2.4% of total exports. Export value was US$2.02 billion.

Sichuan Province:

2020 tea production was 345,000 tons, an increase of 6.0%.

Hubei Province:

2020 tea production was 370,700 tons, an increase of 2.3%. Spring tea: The province’s spring tea production was 147,500 tons, a year-on-year decrease of 4,700 tons, a decrease of 3%. Spring tea sales were 17.43 billion yuan, an increase of 4.77 billion yuan, an increase of 37.7%. The production and sales situation were better than expected.

For your reference:

2019 data

In 2019, the total tea production was 2,793,400 tons, an increase of 177,400 tons over 2018. In 2019, the total area of tea gardens in 18 major tea-producing provinces was 45.978 million mu. Among them, harvestable area account for 36.907 million mu. There are 5 provinces have more than 3 million mu harvestable area – Yunnan, Guizhou, Sichuan, Hubei, and Fujian. Yunnan Province has the largest area of tea gardens in the country, with a total area of 699.9 million mu; Guizhou follows closely behind with 6.987 million mu of tea gardens; Sichuan ranks third in terms of area, with 5.75 million mu of tea gardens in the province in 2019.

The provinces with output of more than 200,000 tons are Fujian, Yunnan, Hubei, Sichuan, Guizhou, and Hunan.

In 2019, the output of green tea, dark tea, black tea, wulong tea, white tea, and yellow tea were 1,772,900 tons, 378,100 tons, 307,200 tons, 275,800 tons, 49,700 tons, and 9,700 tons, respectively (63.47%, 13.54%, 11.00%, 9.87%, 1.78%, 0.35%). Green tea and wulong tea decreased; white tea and yellow tea increased rapidly, increasing by 47.41% and 22.56% respectively from the previous year.

2019 Domestic sale

In 2019, the domestic sales of Chinese tea reached 2.0256 million tons, an increase of 6.02%; the average domestic sales price was 135.25 yuan/kg, a year-on-year decrease of 2.9%. Among them, black tea has the highest average price of 178.98 yuan/kg; dark tea has the lowest average price of 93.73 yuan/kg.

In 2019, the total domestic sales of Chinese tea were 273.95 billion yuan, an increase of 2.95%. Among them, the domestic sales of green tea are 159.674 billion yuan, accounting for 58.3%; black tea is 57.026 billion yuan, accounting for 20.8%; wulong tea is 29.687 billion yuan, accounting for 10.8%; black tea is 20.272 billion yuan, accounting for 7.4%; white tea is 6.292 billion yuan, accounts for 2.3%; yellow tea is 998 million yuan, accounting for 0.4%.

Data source: China Custom and various provincial stats report