The Hindu Business Line : Upsurge in tea exports to Pak

The improvement in Indo-Pak trade relations coupled with the recent rise in Kenyan tea prices following decline in its production has pushed up tea exports to the neighbouring country substantially last fiscal to an estimated 8 million kg.

The shipments to Pakistan as on March 31 have been put at 8 million kg and the exports during the current fiscal are expected to go up to about 12 million kg, trade circles told Business Line. However, the Union Commerce Ministry is reportedly targeting an export of 20 million kg. The Ministry, the sources said, was keen to facilitate this and the opening of the Mumbai - Karachi ferry service has come as a positive step towards this direction, they pointed out.

Trade team visit

Meanwhile, it is understood that a 14-member tea trade delegation is visiting India in the third week of this month and are expected in South India during April 20-23.

Apart from Kochi, Coimbatore and Coonoor, the delegation will also be visiting some plantation districts. Such a delegation had visited South India about two years ago.

After that, there had been a positive change in the attitude towards Indian teas, they said.

Pakistan, which has a total tea market of 120 million kg, imports about 84 million kg of tea from Kenya, that is, in fact, 25 per cent of the Kenyan production. As against this, the Indian exports to Pakistan during the current fiscal are at eight million kg.

Pakistan's duty levels are around 25 per cent for Indian and Kenyan teas.

If Pakistan reduced its import duty for Indian teas to the level it has fixed for Sri Lanka and Bangladesh that could boost the exports, they said.

Pakistan has exempted Sri Lanka and Bangladesh from paying any customs duty. However, 17 per cent duty is levied from them as infrastructure duty, VAT and withholding tax, they said.

Besides, Indian exports to Pakistan are still through the sea route and opening up of the road-route, of late, would also be a further fillip, they pointed out.

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