The Hindu Business Line : South tea sector gearing up to host Pak team

The South Indian tea industry is gearing up to host the 12-member delegation from Pakistan, now on a visit to India. The team is expected to call on the United Planters' Association of Southern India (UPASI) on Friday before meeting tea exporters in Coimbatore the next day.

"The industry is upbeat and hopeful of clinching some business deals," Mr Ullas Menon, Secretary-General, UPASI, told Business Line. UPASI is proposing to organise a tea-tasting event to enable the visiting team taste the teas on display.

BEST TO BE DISPLAYED

"We have received about 150 entries so far. After the initial screening, we will be showcasing samples of the best teas for tasting. Pakistanis prefer CTC grades," he added.

"Broken pekoe-small (BPSM), pekoe fannings (PF), pekoe dust (PD) and red dust (RD) are among the grades on offer for display. The entries from exporters are mostly of the blended varieties," Mr Menon said.

Sources perceive that tea sector in the South has an edge over its counterpart in the North both in terms of product fit and price. "We have teas that match the taste of the Pakistani buyer. Our rates are lower compared to upcountry prices," said an exporter.

The type of teas preferred by the Pakistani buyer is at present being quoted at around Rs 45 a kg (at auctions). Exporters say the buyer is looking at sourcing the tea for $1.05 to $1.10/kg (c.i.f. Karachi).

Volumes up

A quick glance at the tea export volumes to Pakistan and Iraq show that 9.5 million to 10 million kg had been exported during 2005.

The volumes are expected to surge further this year. Industry sources say that a major chunk (about 70 per cent) of the exports is from the South.

According to details made available by the local ICD (Inland Container Depot) and Chettinad Logistics, tea volumes shipped between January and December 2005 totalled 4,043 TEUs (20-foot equivalent units).

Shipment during the first three months of the current calendar year stood at 920 TEUs.

ICD sources said the shipment from Coimbatore to the CIS countries was gradually slipping, while the off take to Pakistan and Iraq was on the rise.

With contracts being revived, they expect an upswing in freight movement in the coming months - up to September.

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