Tea bushes deep in shade in a tea plantation close to Jorhat, Assam, India. Jorhat is at the center of the tea rising area of Assam. The tea bushes on this photograph are deep inexperienced with the second flush of younger tea leaves ripe for harvesting. The shot was taken early within the morning. Photo credit score:

Halmari tea property in India’s Assam set a world report worth of $10.50 (INRs700) per kilogram for crush, tear, curl (CTC) at the Calcutta public sale final month.

The tea was bought by Kolkata-based J. Thomas & Co., and Mahabod Tea House in Kolkata bought 307 kilograms. The tea is anticipated to promote for between $15 and $30 at retail. The worth for the Halmari first flush damaged orange pekoe (BOP) beat the backyard’s personal second flush worth of INRs600 ($9 per kilogram) set in July 2016. Teas on this grade usually promote for underneath $5 per kilogram.

Buyers from the United Kingdom, France, and Germany are additionally splurging on first flush Darjeeling tea driving costs 10 p.c greater and bringing succor to the planters who had feared to start with of the season that Darjeeling tea would lose out to Nepal teas within the international market resulting from restricted manufacturing.


In Japan, dealer Lee Rhoads cited a single kilo of hand-rolled that earned $10,200 (INRs685,850) on April 26 at an public sale that drew 1000 bidders to Shizuoka. Kazuhiko Takeda, 59, a neighborhood tea producer, mentioned, “This year’s tea is so aromatic and full-bodied, and the quality is outstanding.”

Rhoads writes that tea offered at public sale in prefectures resembling Kagoshima and Miyazaki averaged $34 (3,715 Japanese yen) per kilo.


Green tea bushes in spring mountains in China. Photo credit score:

Tea consumption will stay dominated by Asian customers, significantly China and India, which collectively accounted for an estimated 57 p.c of world demand in 2017, up from 48 p.c in 2010. In China, The Economist’s Intelligence Unit “expects tea demand growth to continue to rise firmly, by an average of 4.8 percent per year in 2018-19.”

Ten years in the past the Chinese tea market was in a pricing bubble with tremendous teas promoting for six instances the value of a kilo of gold. An austerity program that resulted in fines and incarceration of 1000’s quashed that pattern. Tea globally has seen little or no worth fluctuation after spiking in 2014, averaging $2.30 per kilogram world huge in response to the World Bank.

The World Bank forecasts a median public sale worth of $2.81 in 2018, $2.83 in 2019 and $2.84 in 2020.

According to a report in Sixth Tone “Five hundred grams of West Lake Long Jing tea, picked during the mid-March first harvest in eastern China’s Zhejiang province, wholesaled at between 1,800 and 2,500 yuan ($260 to $360) this year. After it is repackaged and sold to consumers, West Lake Long Jing will retail domestically at between $870 and $1,150 (6,000 and 8,000) yuan per 500 grams.”

Pricing is way more favorable for growers in China the place tea is just not auctioned. The early teas (pre-Qingming) loved favorable climate in a lot of China.

Sri Lanka

“Tea manufacturing in Sri Lanka bounced again strongly after landslides and extreme flooding in May 2017, with full-year manufacturing really rising by 5 p.c, regardless of alarmist warnings of a collapse in output following the heavy rains. With early indications of favorable climate situations Sri Lanka’s tea manufacturing will rise by an annual common of 1.Eight p.c in 2018‑19.

Sharp wage rises and low mechanization imply that manufacturing prices in Sri Lanka are a few of the highest among the many world’s major tea producers. As a outcome tea costs, which averaged $4.27 in 2017, are greater at the Colombo public sale then every other main tea buying and selling metropolis.


India’s tea exports rose Three p.c within the first two months of 2018 from a 12 months in the past following a rise within the costs of Sri Lankan and Kenyan teas that made Indian teas extra aggressive within the international market.

Sri Lanka’s premium orthodox teas are priced at $5 per kilogram whereas Indian varieties are 20 p.c cheaper on common, at $Four per kilogram. India’s black CTC sells for $Three per kilogram on common, decrease than $3.50 per kilogram charged for Kenyan CTC.

Azam Monem, director of McLeod Russel India, the world’s largest built-in tea firm mentioned India has an edge over each Sri Lanka and Kenya in tea exports. “Although prices of Kenyan tea, our biggest competitor in the world export market, have seen a correction of 20-30 cents per kilo, they are still higher,” Monem instructed the Economic Times.

“Orthodox tea is expected to be a game changer this year for Indian tea exports,” mentioned Monem, who can be the chairman of Indian Tea Association. “Iran and Iraq will be the two major destinations for orthodox teas this year. China and Egypt are also emerging as major black tea markets for India. So this year we can expect a good market,” he mentioned.


“The weather God has been kind to us… there has been adequate rainfall and sunshine and the first flush harvest is very good… we are getting some of the best teas this season,” an official at Namring tea property instructed The World Tea News.

Of the annual Darjeeling tea manufacturing of 8.5 million kilograms, practically 1.7 million kilograms are harvested from the primary flush through the first two months of the brand new season. Tea produced from the youthful extra delicate and tender tea produces a lightweight, floral, contemporary, brisk tea with nice astringency. First flush Darjeeling teas are usually much less oxidized throughout processing and will seem extra greenish in coloration than typical black tea.

Raju Lama, a tea exporter in Darjeeling instructed The World Tea News that he has been getting good response from consumers throughout the world, largely the UK, Germany and France for the primary flush Darjeeling tea.

“Although there have been bargaining from a few regular buyers I am getting good prices from my teas, better than what I used to get before,” he mentioned.

Darjeeling planters are additionally hopeful that the hill district would have regular tea manufacturing of 8.5 million kilograms if the climate stays favorable.

Production declined by 70 p.c in Darjeeling as operations in all of the 87 gardens had been suspended for 4 months from June to September resulting from an indefinite shutdown known as by the Gorkha Janmukti Morcha demanding a separate Gorkhaland state.

Banks have been reluctant to advance credit score to Darjeeling planters due to the extreme losses they confronted final 12 months. Darjeeling tea producers additionally burnt money for the revival of gardens and fee to employees with out income era.


Assam is the world’s largest tea producing area, however teas there usually don’t command costs paid for the excessive mountain teas of West Bengal.

Halmari basic supervisor D.Okay. Arora mentioned the report setting tea was made March 27. “This batch of tea was made out of tea leaves which had experienced congenial weather conditions in the preceding fortnight. It was an ideal mix of sunshine and rain which proved a catalyst in producing a unique blend of strength, body and flavor in it.”

J. Thomas & Co. Pvt. Ltd. chairman and managing director Krishan Katyal mentioned the value was fairly a “phenomenon” and that Halmari was in a special realm now. “It is just brilliant and they make some superb first flush teas too,” Katyal instructed The Telegraph.

In 2017, India tallied the very best tea exports in 36 years, at 241 million kilograms, with a 12 months on-year improve of 8.2 p.c. The nation final exported 241 million kilograms of teas in 1981. The whole worth of tea exports in 2017 stood at $705 million (INRs 4,732 crore), up 5.9 p.c or $40 million for the 12 months.

Sources: World Tea News, The Economic Times, The World Bank

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