The Hindu Business Line : Prospects bright for tea exports to WANA region

TEA exports to the West Asia and North Africa (WANA) region dropped in 2003 due to slide in sales to the war torn Iraq. But prospects look bright this year with the opening up of new markets and the launch of a tea trading centre in Dubai, which could help Indian traders push harder in a more competitive wider regional market.

Mr S. Mukherjee, Dubai-based Manager, WANA region, for the Tea Board of India, told Business Line that Indian tea exporters were assessing the feasibility and prospects of participating in the tea trading centre which would begin operations in mid-2004.

Officials from the Dubai trading centre earlier held discussions with the Tea Board of India Chairman Mr N.K. Das in Kolkata. An official from the Indian Tea Association recently visited the UAE to discuss the market potential of the centre with buyers and Dubai officials, he said.

Mr Mukherjee said the planned tea trading centre was a positive development, as it would provide a readymade market for traders and facilitate availability of immediate stocks, thereby saving time if orders were received.

Dubai's infrastructure facilities and tie-ups between Dubai Ports and few Indian ports could also assist tea exports, he said. ``It is in the formulation stage and buyers/sellers will now discuss various issues like stocks. We are hopeful it will begin successful operations soon,'' he said.

The WANA region continues to be a comparatively large market for Indian tea exports, accounting for 42.8 million kg (mkg) (Rs 402.45 crore) out of a total of 173.10 mkg (Rs 1,550.92 crore) exported in 2003. Around 76.82 mkg was exported in 2002 to the WANA region, but the slide in exports to Iraq from 44 mkg in 2002 to 12.6 mkg in 2003, affected the overall export figure in 2003, the official said.

The ban on import of tea by Iran also affected exports to the UAE to some extent. A total of 24.8 mkg was exported to the UAE, which is a major re-export centre, compared to 26.4 mkg in 2002. Other markets in the region like Saudi Arabia, Oman, Qatar, Sudan and Tunisia showed a rise in exports in 2003.

``We are trying to export more varieties catering to orthodox requirements preferred by customers in Saudi Arabia as this market has a lot of potential,'' said Mr Mukherjee.

With Libyan authorities also looking seriously at privatisation, there was a lot of potential in the Libyan market that was being tapped, he added.

While overall exports in 2003 dropped to 173.1 mkg from 201 mkg in 2002 due to the loss in the Iraq market, the favourable developments were an increase in US demand where 10.4 mkg was exported and the growth of the West and East European and Asian markets, the official said.

In the Asia region, exports increased to 17.29 mkg in 2003 from 11.31 mkg in 2002. An agreement signed with Pakistan could see an increase in exports this year. Moves are on to boost exports of organic tea to Europe, where there is a good demand.

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