The Hindu Business Line : Tea exports to Pak may touch 25 mkg in 2 years

However, the most crucial factor upon which growth in exports will mostly depend is price. The Indian tea is over-priced to the extent of Rs 8-10 per kg compared to Kenyan tea.

Kolkata , May 24

BY 2006-07, exports of Indian tea to Pakistan is targeted to reach 25 million kg, according to Mr C.K. Dhanuka, President of Indian Tea Association (ITA), just back from a trip to Pakistan.

He led an 11-member delegation with representatives from corporate houses like Tata Tea, Hindustan Lever and Assam Tea Co among others. The team met leading tea importers of Pakistan and members of the Pakistan Tea Association.

A memorandum of understanding (MoU) was also signed by the associations. According to Mr Dhanuka, it was decided by both parties that positive steps would be taken so that tea imports into Pakistan from India touches the 25 million kg mark by 2006-07.

It may be noted that in June last year the two associations signed a similar sort of MoU and decided to have a tea trade of 10 million kg. Indian tea exports to Pakistan during 2003 was to the tune of seven million kg against 3.5 million in 2002. During the current year, exports to Pakistan are said to be on the upswing.

However, the most crucial factor upon which growth in exports will mostly depend is price. According to Mr Dhanuka, Indian tea is over-priced to the extent of Rs 8-10 per kg compared to Kenyan tea.

``If we can correct the price differential and offer tea to Pakistan at a reasonable and competitive rate, then no one can stop growth in Indian tea exports,'' Mr Dhanuka told Business Line.

It was learnt from industry sources that the price of CTC tea from Kenya is approximately Rs 75 per kg. Compared to it, Indian tea of the same quality is priced around Rs 85 per kg.

``Our main disadvantage is high cost of production. Labour cost of Indian tea industry is highest in the world, making us uncompetitive in the global market,'' Mr Dhanuka said.

It may be noted that Pakistan is the third largest importer of tea after Russia and the UK. It consumes around 155-160 million kg every year, generally of the CTC variety. Most of the teas that are being exported to Pakistan are from the North Indian gardens.

However, South Indian teas are competing hard with the North Indian varieties. Representatives from South India were also present in the recent delegation that visited Pakistan.

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