The Hindu Business Line : Egypt team to attend global tea meet

Kochi, Dec. 31 A nine-member Egyptian trade delegation is to visit India to participate at the India International Tea Convention (IITC) to be held from February 19-21 in Kochi and to hold discussions with all the stake holders in the tea sector.

The visit of delegation headed by Mr Said El hefny, Vice-Chairman, General Authority of Supply Commodities (GASC) in Egyptian Government under Trade and Industry, would boost exports of tea from India to the Arab Republic of Egypt, Mr Ullas Menon, Secretary-General, United Planters Association of South India(Upasi) told Business Line on Wednesday.

The Tea Board and the Upasi under the aegis of the Consultative Committee of Plantation Association (CCPA) is organising the three-day convention. It is aimed at reinforcing the salient and unique features of Indian teas to the tea fraternity across the world, he said. The convention will have business sessions on February 20 and 21 in which about 500 delegates representing the broad spectrum of the tea fraternity are expected to participate.

Eminent speakers on tea markets in Russia, Egypt, the West Asia, Pakistan, UK and the US would address the gathering. There will also be a special focus session on south Indian teas. Apart from the business sessions and the Golden Leaf India awards, the convention will also provide an opportunity to showcase the range of teas and the science and technology it takes to produce it, through a trade exhibition, he said.

After participating at the convention, the Egyptian delegation will visit tea estates and factories in Munnar (Kerala) and Coonoor (Tamil Nadu), besides having meetings/interactions with all stakeholders in the tea industry including Tea Board and Upasi officials, growers, exporters, dealers and auctioneers etc, he said.

Exports up

There has been an upward swing in export of teas to the north-African nation ever since the Egyptian government had rationalised the duty structure in 2006. However, it picked up significantly following the buyer-seller meet organized by the Tea Board in Cairo in May 2008. Add to this, the Union Commerce Ministry’s decision to re-establish the Tea Promotion Centre in the Egyptian capital has also contributed to the substantial increase in exports subsequently, he said. Total shipments of tea from India from an average export figure of 13.5 million kg (mkg) from 1971 to 1990 it became 5.6 mkg in 1990s and 0.3 mkg from 2001 to 2005. It is estimated at 15 mkg in 2008 and projected to touch 20 mkg in 2009. “Our target is 30 mkg over the years after the commissioning of the Centre expected by mid-March,” Mr Menon said. “We were expecting the clearance from the Commerce Ministry before December 31, and hope to get it by mid-January,” he said.

Upasi has sent the proposal early this month to the Tea Board for submitting it to the Union Commerce Ministry who had offered to provide the initial investment. The ministry has already agreed to meet the initial expenditure now estimated at around Rs 50 lakh, he said. According to him the Industry would run the establishment after its inception.

It would facilitate exports of teas from India apart from promoting the Indian product further. Two Egyptian government controlled companies, viz., Misr Import and Export Company and Al Nasr Export and Import Company, would be handling the imports of tea and other commodities from India.

The former, which has offered a place for setting up the Centre besides providing all the infrastructures required for handling export of teas from south India, he said.

According to Mr Menon, the members of the delegation jointly control over 50 per cent of the 90-mkg Egyptian market. The Union Ministry of Commerce and the Tea Board have identified Egypt and Iran as thrust areas for improving exports. India had substantial market share in the CTC segment of Egypt till early 1990s. During 1981, India exported 18.76 mkg out of 53 mkg of tea imported by Egypt, Mr D.P. Maheswari, President, Upasi, said.