Jairam Ramesh calls for tea trade through Wagah route

Kochi, Mar 22 (UNI) Union Minister of State for Commerce and Industry Jairam Ramesh today said the Centre was negotiating with Pakistan to open the Wagah route for tea trade as it would help improve the competitiveness of Indian tea.

Speaking to media here, he said presently tea exports to Pakistan were routed through Dubai and this made Indian tea costly in the neighbouring country's market.

Tea was not part of the list of 12 commodities that could be traded through the Wagah route and this non-inclusion was against the letter and spirit of the SAFTA agreement, he said.

Mr Ramesh said a delegation led by Tea Board Chairman Basudeb Banerjee would visit Pakistan from April 14 to 21 to discuss the issue with their counterparts in Islamabad. The issue would also be taken up in the upcoming SAARC summit in New Delhi, he added.

In 2006, tea export to Pakistan touched a record 16 million kg and this should be sustained and increased in years to come, he added.

Mr Ramesh said Egypt had emerged a viable market for Indian tea with last year's export of two-and-a-half million kg.

To market branded tea, a Tea Marketing Centre would be established in Cairo and expenditure to run it would be shared by the Indian Tea Board and private companies.

The Centre was chalking out a five-year plan to increase production of orthodox tea from 80 million kg to 120 million kg as the demand for such tea was on the rise compared to CTC (cut, tear and curl) tea in markets like Russia, UK, UAE and Iraq.

The Rs 4,760 crore Special Purpose Tea Fund spread over 15 years would be used to replant and rejuvenate tea gardens that were over 40 years old. Mr Ramesh said the Board has received 55 applications for replantation - 36 from Kerala, 17 from Tamil Nadu amd two from Karnataka.

On electronic auction of tea, the Minister said a technical expert was appointed and the service would be a reality in the near future.

Mr Ramesh said the government would also take steps in association with state governments to open the closed tea gardens - 17 in Kerala, 14 in West Bengal and two in Assam.

The three-day India International Tea Marketing festival would be held in Guwahati from November 16 and the 2008 edition in Kochi.

UNI