The Hindu Business Line : Tea exports to Pak pegged at 6 mkg

According to industry sources, exports to Pakistan during January-September this year were 3.5 mkg. In October, export of another 0.7 mkg was reported. Hence, total tea exports to Pakistan in the first 10 months of 2003 are 4.2 mkg. Sources said it was likely to touch 6 mkg by the end of December.

"It is certainly not bad, considering the fact that export of Indian tea to other crucial markets is constantly falling. Moreover, we would have to study the Pakistan market from a different perspective," sources said.

It may be noted that Pakistan is the third largest importer of tea after Russia and the UK. It consumes more than 150 mkg every year. India's export to Pakistan was a meagre 3.7 mkg in 2002.

In July, this year, ITA took a delegation to Pakistan. After several rounds of discussion with the Pakistan Tea Association, the two bodies signed a formal memorandum of understanding.

The domestic tea industry, in general, was expecting to export 10-15 mkg of tea to Pakistan. However, the Kenyans dominate the Pakistani market with a market share of 65-70 per cent.

"During July and August, there was hardly any exports to Pakistan. First, it was the formal function and then it was followed by several tea-tasting sessions. Trade picked up only after August", sources said.

Hence, all the transactions between the Indian sellers and Pakistani buyers took place only in the last quarter. "Moreover, the targeted amount of 10 mkg is for the financial year 2003-04", sources clarified.

Pakistan is primarily a CTC market. Most of the tea that is being exported to Pakistan is from the North Indian gardens. However, South Indian producers are competing hard with the northern players.

In the agreement signed between the tea associations of the two countries, the Indian Tea Association has assured its counterpart that it would send quality tea at internationally competitive price.

Meanwhile, commenting on ITA's visit to Russia its Chairman Mr C.K. Dhanuka, said there were some initial apprehensions on the part of Russian buyers which were subsequently cleared.

Traditionally, tea exports to Russia was mostly through merchant exporters. Probably, for the first time, Indian tea producers have visited Russia and held one-to-one dialogues with the buyers.

"We are not expecting a surge in tea exports to Russia overnight but it is a correct move in the right direction. We would have to continue with this sort of interactions in the future," Mr Dhanuka said.

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