Surging tea prices provoke fear about the a potential ‘tea bubble’ in the nation’s tea industry.
What does the future hold for China's tea? Image: Th33pan |
Trouble is brewing in the world’s largest tea market as the cost of a cuppa continues to rise. Across China, many believe that the price of ‘green gold’ is rapidly getting out of hand, as some teas even out-priced gold itself this year.
One variation, “Daqi” - or “great treasure” in Chinese, stands out in particular. Cultivated in rural Henan province, the coveted Xinyang Maojian tea will often fetch hundreds of thousands of yuan per half kilo and each order is carefully packaged in a cloisonné container, with a sandalwood base and a fine jade lid.
A high-end blend of “Longjing” tea fetched CNY 180,000 per half kilo at auction this March, making it gram-for-gram more expensive than gold. Nonetheless, many farmers fear a production surplus, combined with hugely inflated prices, may lead to an economic bubble which threatens to damage the lucrative tea industry.
In China, tea is considered a cultural heirloom and carries with it the same dignity and cultural heritage as timepieces or fine wines in the west.