Financial Daily from THE HINDU group of publications
Saturday, Apr 22, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 22, 2006 |
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Agri-Biz & Commodities
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Tea Industry & Economy - Exports & Imports Pak team indicates doubling of Indian tea imports L.N. Revathy
Pakistan trade still feels Kenyan tea is excellent but is worried about paying $2 a kg. For Indian tea, it is unwilling to pay over $1/kg.
Coonoor , April 21 Speculation was rife at the opening of the tea tasting session this morning, with the visiting Pakistani delegation indicating that the teas on display suited the kind of product mix that they were looking for. About 260 tea samples were on display. The number of entries from the estate sector stood at 38, followed by 14 from the bought leaf, Indco factories and Tantea apart from entries from the trade segment. On lookers, mostly Indian sellers and merchant exporters patiently watched the delegates brew the tea before tasting it and were sure that by the end of the day they would strike some business deal. Though no deal was firmed up/finalised, the Chairman of the delegation Mr. Muhammad Altaf indicated that Pakistan would double its import from 9.3 million kg (mkg) in 2005 to at least 20 mkg this year. "We prefer the dark, thick liquid. There are a couple of good teas here, but the rates are high," Mr Abdul Jabbar Paracha, a member of the buying community said. Mr Paracha, however, conceded that the quality had improved substantially in the last one year. (He was a member of the delegation that came to India in 2004). Pakistan, according to industry sources is looking for `good quality teas', but unwilling to pay the price. "They are prepared to pay just about $1/kg (landed cost). It is not a viable proposition," industry sources say. Mr Altaf said that his country had started to look at other options after Kenyan tea industry was badly hit by drought, driving the prices northwards. "We source two-third of our requirement from Kenya. The teas are excellent, but the rates have soared to about $2/kg." According to the trade association of Pakistan, the quantities catalogued for the weekly auction comprise of huge inflow from Kenya. "We bought 54,000 packages (of 70 kg) last week, and the quantities on offer for the coming week (Kenyan tea alone) has risen to 72,000 packages. It would rise to 78,000 the following week and further to 1.11 lakh packages by mid-May. We have never stopped buying from Kenya, in spite of the upward movement in price levels," Mr Paracha said. When asked if the country would revert to buying from Kenya if the situation improved, he asked "why not". When asked why they were unwilling to pay something more for the Indian tea, he said: "You cannot compare this with the Kenyan teas."
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