The Hindu Business Line : Dubai to have global tea trading centre soon

THE Dubai Metals and Commodities Centre (DMCC) on Tuesday announced its plan to create the Dubai Tea Trading Centre (DTTC)— a new international centre to facilitate the regional trade of tea.

The DMCC's Executive Director (Commodities), Dr David Rutledge, said: "West Asia and adjacent regions account for approximately 25 per cent of global tea imports and Dubai is already an important regional centre for tea value adding and trans-shipment. With the prospect that a number of the regional tea markets will in the future become more open to freer participation in international trade, there is an opportunity for Dubai to substantially strengthen its role as a focal point for this trade. DTTC has been conceived as a vehicle to facilitate this process."

The planned new centre has already won the enthusiastic support of tea industry participants from three of the world's leading tea exporters - India, Sri Lanka and East Africa. Potential DTTC members will include tea producers, exporters, regional importers and international merchants.

DMCC expects the Dubai Tea Trade Centre to commence operations in mid-2004, with an aim to capturing some of the current season's marketing activity.

Welcoming the announcement, the Chairman of Tea Board of India, Mr N.K. Das, said: "The Indian tea industry has for some time been actively considering ways of enhancing its access to the growing West Asian market, and have been particularly interested in the role that Dubai might play.

DTTC will be a dedicated facility in Dubai where international tea producers and merchants can keep stocks of tea that will be readily available to meet the immediate requirements of importers in West Asia and adjacent regions. Enabling availability of a variety of teas from multiple origins, DTTC will offer convenience to tea purchasers, whilst promoting the interests of exporters.

Initially, DTTC will be located at an existing warehouse facility within the Jebel Ali Free Zone (JAFZA), with plans to move to a purpose-built facility in the free zone within the first two years of operation.

In 2003, Dubai imported 74 million kg of tea with an approximate market value of Emirati Dirham (AED) 1 billion, while a further 71 million kg was trans-shipped through the Jebel Ali Port.