Demand for early batch of spring green tea drops

The early batch of Longjing tea is usually picked before Tomb Sweeping Festival, which falls from April 4 to April 6.

Compared to regular green tea, the price of the early batch of spring tea is usually at least 30 percent higher than usual, said Shang Jiannong, president of the Hangzhou Xihu District Longjing Tea Industry Association.

"The top Longjing tea used to sell for 360,000 yuan ($58,000) per kilogram, but business is tougher and tougher since last year," Shang said.

Shang said that many tea growers in the district have been complaining to the association about the price drop this year.

"In 2012, the price offered by tea trading companies was 6,000 yuan per kilogram. Last year, the price dropped to 3,000 yuan. It is predicted that the price will continue to drop this year to about 2,000 to 2,500 yuan," Shang said.

Shang said that 70 percent of tea growers from the association sell their tea to trading companies, which are becoming increasingly reluctant to place orders.

"In previous years, the Meijiawu area, one of the main growing areas of Longjing tea, will be filled with purchasing cars. This year, the number of such cars decreased sharply because those companies are aware that the market demand will not be as large as it was before," he said.

Ma Lianchen, general manager of Zhejiang Tianhong Trading Co, said that tea trading companies like his are now very cautious about placing orders with tea growers.