Indian tea exports to Pakistan to make a quantum jump

Kolkata, May 8 (UNI) With Indian varieties evoking strong demand in Pakistan, tea exports to the neighbouring country is set to jump at least by 50 per cent at 21 million kg while the country's overall tea exports is expected to increase to 210 million kg this year from 203.8 million kg.

Tea exports to Egypt, another major growth area besides Pakistan, would also rise between six and ten million kg during 2007 from 2.7 million kg recorded last year, Tea Board Chairman Basudeb Banerjee said.

''Of the 210 million kg targeted for exports this year, Pakistan, which has begun sourcing higher volumes of Indian tea, is expected to contribute ten per cent. We expect tea exports to Pakistan to touch the 25 million mark in the next two to three years,'' Mr Banerjee, who led a 13-member delegation to Pakistan late last month, said.

The Tea Board Chairman informed that around 2.7 million kg had already been exported to Pakistan between January and March this year with North Indian varieties making inroads into the Pakistan market. With an objective of consolidating tea trade ties between India and Pakistan, the delegation visited Lahore, Islamabad, Peshawar and Karachi holding talks with representatives of the Pakistan Government, the Pakistan Tea Association, Pakistan Chamber of Commerce and Industry and Pakistani buyers.

The subjects featuring in their discussions, included the possibility of Pakistan extending preferential trade facility to India for lower customs duty, opening up of land trade between India and Pakistan through border posts and an initiative to open up cargo movement by rail via Attari-Wagha.

The Indian team, comprising among others, representatives from high-profile Indian tea companies and the Secretary General of Indian Tea Association, also visited the offices of blender packers who wanted an Indian tea center in Karachi, similar to the one being conceptualized in Egypt.

''The visit to Pakistan was successful. Pakistan's Commerce Ministry officials assured us of a composite dialogue between the two countries in July where the suggestions of the Indians would be taken up,'' Mr Banerjee said.

Replying to a question, he said the country would produce more tea this year than 955 million kg, recorded last year. At present China is the largest producer of team with 1,024 million kg.

While exports of Indian tea was expected to consolidate presence in countries like Pakistan and Egypt, market in Iraq, one of the largest buyers, however, remained unpredictable because of the prevailing political situation.

''Last year Iraq imported 42.13 million kg of Indian tea. But we really do not know what will be the figure this year because of the volatility. It is now important for us to have access to other global markets,'' Mr Banerjee said.

UNI