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 famous 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. John Yanxu researches and Dan Bolton writes the Weekly China Price Watch. Photo of white tea drying in the sun in Fujian courtesy of the China Tea Marketing Association (CTMA).

Subscribe for full access to all Tea Price Reports & Tea Journey articles

China Price Watch

The Westlake Dragonwell tea harvest in Hangzhou is well underway, with optimal conditions for plucking. The same conditions hold true in Sichuan Province and Suzhou, Jiangsu where pre-Qing Ming Biluochun is getting better prices than during the same period in 2021. China’s official first harvest date was Feb. 10 in the Sanjiang Dong region of north Guangxi Province. Temperatures were colder at the start of the harvest. The February average was -3.2°C which is 1.9°C below normal. Snow fell as late as mid-February in Fujian and parts of Jiangxi, Guangdong, Guangxi, and Hunan but there was no damaging hard frost as buds had not set. Precipitation nationwide was 52.5 mm, 24.6% higher than the norm with the heaviest rainfall reported in southwest China, western Jiangnan, and southerly South China. There were no extreme weather events.

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.

March 18th, 2022

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. | Copyright 2022 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 Yuan (RMB) 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

*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

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

This week the Indian Tea Association asked the Assam government to urge the Centre to explore how tea grown in the Barak Valley can be sold at the tea auction in Bangladesh. Currently, tea from the Barak Valley and Tripura travels 1,400 kilometers to the Kolkata auctions. However, Assam shares a border with Bangladesh, and growers can easily take its tea to the Srimangal Auction Centre. The report added that tea exports to Bangladesh declined in 2017 with import duties, rising first from 30% to 70% before becoming 100%. Reopening trade will benefit both countries.

Learn more: Bangladesh Tea Rebounds

In weather, there’s finally some relief with the arrival of the much-delayed rains in northeastern India. The forecast indicates moderate to heavy rain over Arunachal Pradesh, Assam, West Bengal, Sikkim, and the other states in the region this week. 

Subscribe for full access to all Tea Price Reports & Tea Journey articles

Tea Prices

In auctions, Sale 12 was held at Kolkata in north India. CTC and Orthodox Leaf saw better demand and better prices than Sale 8, the last sale held here. In the south too, Leaf tea – both Orthodox and CTC – sold higher volumes, and for marginally higher prices. In Coonoor, blenders were active as were regional packeteers. Exporters finally picked up buying, choosing broken CTC grades and CTC Dust. 124 kilos of green tea on offer were sold. Cochin saw some demand for Orthodox Leaf and orthodox Dust from exporters 

 Tea Price Comparison charts, courtesy TSigma Consultancy

*New audio uploaded4-4-2022

PHOTO CAPTION | CREDIT: Adobe iStock

Tea Prices

The mood remains subdued. There was no sale in north India this week. In the south, Sale 11 saw a marginally higher volume of sales compared to the previous week, with 76% of the total offering sold. However, average prices were lower than Sale 10, with only Orthodox Dust seeing a marginally higher price. Exporters and buyers were selective except in Coonoor where Orthodox Leaf (broken and fanning) saw good demand. Coonoor also saw the highest volume of sales. 124 kilos of green tea on offer sold for Rs 275 a kilo

 Tea Price Comparison charts, courtesy TSigma Consultancy

*New audio uploaded 3-09-2022

PHOTO CAPTION | CREDIT: Adobe iStock

All eyes remain on the Ukraine crisis. Concerns continue about exports. Last week, there were no auctions in North India. In the south, the orthodox market struggled as exporters remained reticent. Cochin saw only 59% uptake of orthodox leaf, with Hindustan Unilever lending much needed support. Coonoor too saw similar trend, with CTC leaf performing better than orthodox. 

In Darjeeling, first flush teas have begun to make their entry into the market. We caught up with Sanjay Choudhury of Ringtong TE, who says, crop and quality of the first flush should be decent. While exports, which Darjeeling is heavily dependent on, may be affected, Sanjay points out the silver lining: “There is huge potential for good quality Darjeeling teas which meet international food safety standards, in the domestic market and we need to reach out to them,” he says. Sanjay’s bigger concern is to see how mechanisms can be enforced to prevent non-Darjeeling teas from selling as Darjeeling, which he has been fighting actively over the last year. 

 Tea Price Comparison charts, courtesy TSigma Consultancy

*New audio uploaded 3-09-2022

PHOTO CAPTION | CREDIT: Adobe iStock

The Russian invasion of Ukraine and the sanctions against Russia are being viewed with concern by the Indian tea industry. The mood at the last auction was understandably subdued. In Kochi, exporters were barely active. The average price of orthodox leaf dropped by about Rs 10 per kilo, which is significant given that 229 tonnes were sold. 

Exporters are waiting to see if shipments will be able to arrive at the destination ports. Many liners are refusing to carry cargo to Russian ports. The other concern is payments being blocked because of sanctions against Russia. Russian banks are denied access to SWIFT or Society for Worldwide Interbank Financial Telecommunication.

India is relying on its domestic industry and also looking at developing alternative export markets in Iraq, Saudi Arabia, the US, Japan, and Tunisia.

India Tea Prices

North India saw auctions only in Guwahati. All three auction centers in the south had a sale.

 Tea Price Comparison charts, courtesy TSigma Consultancy

*New audio uploaded 3-09-2022

PHOTO CAPTION | CREDIT: Adobe iStock