A comparison between Sale 16 for 2022 and 2021 for north India shows a marked decrease in the volume of tea sold this year. This is seen most significantly in CTC Leaf and CTC Dust and to some extent also in Orthodox Leaf and Orthodox Dust. The exception is Darjeeling tea which has seen higher volumes for Sale 16 this year, with carrying over from 2021. The average prices are higher than last year, most significantly for CTC Dust and Darjeeling tea. An all-India comparison for the sale week between 2021 and 2022 shows a significant decrease for CTC Dust. 

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Tea Prices

Sale 16 saw strong demand for orthodox tea in Kolkata and with the Middle East actively participating. Buyers were active for Darjeeling tea as well. Average prices for top Darjeelings were in the range of Rs 995 or USD12.98 (Badamtam tea estate) – Rs 1603 or USD 20.91 (Sungma tea estate), an increase from last week. Guwahati saw good demand for leaf, although prices dropped from Sale 15.

In the south, Cochin saw good demand for Orthodox and CTC – both leaf and dust. Coonoor saw good uptake of all tea types, with a sale average of 84%. Exporters and major packeteers were active

 Tea Price charts, courtesy TSigma Consultancy

All India Averages, Sale 16 2022 vs 2021

South India Sale 16 vs Sale 15

North India Sale 16 vs Sale 15

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Exports to Russia have resumed and five containers of tea were shipped this week. However, exports continue to remain a cause for concern especially as they have declined in 2020 and in 2021 consecutively.

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Tea Prices

In north India, auctions took place across all three centers of Kolkata, Guwahati and Siliguri. 65% of teas on offer were sold. Of 20 tons of Darjeeling, only 14 were sold for an average price of Rs 228 per kilo. Darjeeling hasn’t fully entered the auction and there’s only a small volume of the first flush on offer. Old season teas continued to be sold. Exporters have not been picking up any Darjeeling tea yet. Kolkata saw good demand for orthodox and the Middle East was active. In the south, Kochi auctions were closed for Easter. At Coonoor, orthodox leaf sold well although prices were only marginally higher than the previous week. CTC leaf sold well. Major blenders and exporters were active. 

 Tea Price charts, courtesy TSigma Consultancy

*New audio uploaded4-4-2022

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 The industry, still grappling with reduced exports to Russia is now facing climate change woes. Darjeeling saw an unexpected hailstorm in some parts last week. Despite these challenges, across India, everyone is looking forward to celebrating the lunar new year, which is called by different names in different parts of the country. In Assam, it’s celebrated as the Bohag Bihu – the state’s most important festival.

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Tea Prices

All three auction centers in north India operated for Sale 14. Guwahati saw good demand and prices for well-made teas were reportedly higher than last year. Kolkata saw good demand for all tea types. The Middle East led in exports.

In the south, the leaf market did well in Cochin, with more exporters coming forward for orthodox tea, presumably to make up for the deficit from Sri Lanka.

Coonoor saw good demand for CTC leaf, with major blenders and exporters active. Orthodox leaf also saw improved demand. CTC Dust did well. Green tea on offer in Coonoor did not find any takers.

Ten lots of the first flush from Sikkim’s Temi tea gardens is reported to have fetched Rs 7,500 a kilo, sold for export to South Korea.

 Tea Price charts, courtesy TSigma Consultancy

*New audio uploaded4-4-2022

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Tea Price Report

Price volatility is an ongoing concern as the coronavirus continues to spread in China. The tea lands are not greatly impacted as of March 2022 but Shanghai and surrounding ports as well as far northern provinces are in lockdown. The Tea Biz Tea Price Report 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 (CTMA) which provides a benchmark for the 10 famous teas from the world’s largest tea exporting country. Listen free to the weekly summaries on the Tea Biz Podcast and click either the China Price Watch or India Price Watch for a full report analyzing trends with additional data sets and graphs. John Yanxu researches and translates and Dan Bolton writes the Weekly China Price Watch from March through May. Aravinda Anantharaman in Bengaluru compiles the India Price Watch year-round.

Photo of veteran tea pluckers in Guizhou courtesy of  CTMA.

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China Price Watch

Favorable weather continues in China where a cool, wet February followed a warm January that promoted budding. Rainfall since has led growers to predict a strong harvest. “The quality of spring tea in 2022 is significantly better than that of last year, and the color, aroma, and taste are all ideal,” according to the China Tea Circulation Association.

China has gone to great lengths to adjust labor restrictions due to COVID. During the winter all factories and equipment were thoroughly cleaned and plans of action were established to manage the transportation of tea and tea pickers to ensure smooth operations. Currently, there are sufficient workers to meet production demand. Wages for workers have increased between 5% and 20% depending on location. In China, workers are either paid by the day or for the total kilos harvested.

Rates in Sanjiang County, Liuzhou, Guangxi, are 60-70 yuan/catty [a catty is equal to 500 grams]; in Lingshan County and Pubei County in Qinzhou the rate is 35 yuan/catty, and in Zhaoping County in Hezhou the rate is 40 yuan/catty. The day rate is 150 yuan (about $23.50 per day USD). In Guizhou, the daily salary of mining workers in some areas has increased by about 20-40 yuan compared with last year, and the overall range is 80-200 yuan per person per day. In Qinglong and Pu’an counties in southwestern Guizhou have reached 200 yuan/person/day (about $31.50 per day USD)

Tea Prices

Trade is brisk but green tea prices remained about the same as last year with some regions reporting a notable increase. Early (pre-Qing Ming) spring tea trading was booming in Hainan, Guangxi, Sichuan, Guizhou, and Fujian. In Sanjiang County, Guangxi, improved quality led to a significant increase in prices compared to the same period last year – the highest price of green tea of ??the same grade in the same period last year was 85 yuan/catty, but this year it reached 115 yuan/catty. The price of one bud and one leaf of Nianfuyun No. 6 was 14-25 yuan/catty in 2021, while it is as high as 25-35 yuan/catty an increase of more than 40%in the same period of this year.

China harvested 3.18 million metric tons in 2021, up from 2.97 million metric tons of tea harvested in 2020 and well ahead of pre-pandemic 2019, according to the National Bureau of Statistics of China’s Statistical Communiqué on 2021 National Economic and Social Development.

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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 Yuan (RMB) and converted to USD. Export prices vary greatly from the domestic averages listed above. Source: China Tea Marketing Association | Special thanks to John Yanxu in Yunnan for translating.

*Weekly averages are a joint effort of the Shanxi Tea Society, Liaoning Tea Industry Association, Jiangsu Tea Association, Zhejiang Tea Industry Association, Anhui Tea Industry Association, Henan Tea Association, Henan Tea Chamber of Commerce Hubei Tea Association, Hunan Tea Industry Association, Guangdong Tea Industry Association, Guangxi Tea Industry Association, Hainan Tea Association, Chongqing Tea Chamber of Commerce, Sichuan Tea Circulation Association, Guizhou Green Tea Brand Development Promotion Association, Yunnan Tea Circulation Association, Shaanxi Tea Industry Association

**The catty, kati or ?, read as jin in Chinese, is a traditional Chinese unit of mass used for weighing food and other groceries in some wet markets, street markets, and shops. Related units include the picul, equal to 100 catties or 50 kilos of tea.

Copyright 2022 Tea Biz Tea Price Report www.tea-biz.com

Send comments and suggestions on how to improve this report to Dan Bolton ([email protected])

Sri Lanka’s deep economic crisis is compounded by power cuts, fuel cuts, and also low rainfall, leading to predictions there will be a 15-25% drop in the country’s tea production in 2022. Sri Lanka accounts for about 50% of the total trade of orthodox tea globally, supplying markets in West Asia, including Iraq, Iran, the UAE, North Africa, Turkey, and Russia. The Tea Exporters Association (TEA) of Sri Lanka reported 270,500 metric tons of orthodox tea produced in 2021. So, this shortfall could be significant. Buyers of Sri Lankan tea may turn to India to meet the deficit. However, exporters are quick to clarify that it’s unlikely that buyers will replace their allegiance to the brand Ceylon tea just yet. India produces about 120 million kilos of orthodox tea annually, much of which is pre-sold. Meanwhile, Russian buyers are showing a return to the market after the last three weeks providing some relief for India.

Learn more: Protecting Sri Lanka’s 150-year-old brand

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Tea Prices

In auctions, north India only conducted Sale 13 at Siliguri. Although the first flush teas are already out in the retail market, Darjeeling tea is yet to hit the auctions. Goodricke has had a record sale so far from its Badamtam White Tea. The buyer was the Indian tea brand Golden Tips, which bought 10kg of organic white tea for Rs 23,000 per kilo and 5 kg of moonlight white tea for Rs 21,000 per kilo.

Auctions were as usual in the south. Coonoor saw good uptake of orthodox leaf, and whole leaf grades saw marginally higher prices. Exporters were active for larger broken grades, fanning, and dust. 

 Tea Price charts, courtesy TSigma Consultancy

*New audio uploaded4-4-2022

PHOTO CAPTION | CREDIT: Adobe iStock