A compilation of 4 indexes were released as a debut of the Hangzhou Index of Chinese Tea Industry: the index of fresh tea leaves price, the index of trade activeness of fresh tea leaves, the index of farm price of wholesale made tea, and the index of trade activeness of wholesale made tea, helping policy makers to make better decision and enabling industry players to understand the market. By using a vast database, as well as by employing the mechanisms of “Double Check” and “Back Office Calibration”, the index gives the best and most detailed picture of the Chinese tea market. The new index shows a year-on-year growth of the price of fresh tea leaves and farm price of wholesale made tea. Over the period of March 1 to April 18, the weighted average growth rate of prices of fresh tea leaves is 106.69%, peaking at 128.60% before decreasing to a lowest 84.52%. Price of wholesale made tea shows an average increase of 104.54%, with a high of 141.06% growth and a low of 80.64%. The average price growth is 102.80% for green tea, 102.36% for black tea, 141.94% for dark tea, and 88.75% for herbal tea. The index also indicates a lower price for famous and quality tea and a higher price for premium bulk green tea over the same period last year.

The new released index, initiated by the municipal government of Hangzhou, was developed jointly with the China Agriculture Research System of Tea Industry, Institute of Big Data and Statistical Index of Zhejiang Gongshang University, Hangzhou Municipal Price Bureau, and Office of Agriculture and Rural Affairs of Hangzhou. A committee of 26 experts from 22 different units was formed to supervise the collection of data at 487 designated sites, distributed to 114 exemplary counties and 18 wholesale markets in the 16 major tea-producing provinces in China.

Further improvements will be made in developing a cooperation mechanism in data collection, an information-based platform and criteria for the tea industry.
 

By Zhou Ximai
ximai.zhou@outlook.com