The Hindu Business Line : `Potential for exporting 20 mkg tea to Egypt'

Kolkata April 15 India should be able to export 20 million kg of tea annually to Egypt within the next two to three years, up from 2.7 million kg last year, according to Mr Basudeb Banerjee, Chairman, Tea Board. "Egypt is 80-million kg market and there is no reason why India should not be able to have a 20 to 25 per cent share of the market within the next few years," he said. Mr Banerjee based his optimism on several factors. First the disappearance of the price differential vis-à-vis Kenyan tea. With the slashing of the import duty, Indian tea has become price competitive, he told Business Line. Secondly, like India, Egypt was also a major consumer of CTC variety, mostly fannings and dust. In fact, historically, Indian tea has always met Egypt's requirements.

Finally, the Government buying agencies in Egypt were well disposed towards Indian tea, so much so that El Misr and El Nasr, the two state-owned buying agencies, had already indicated to buy 12 million kg of tea immediately and 50 per cent of it would be from India. The trend was likely to persist, he said.

Mr Banerjee, however, said Indian exporters must be consistent in their adherence to quality to be able to retain the hold on the Egyptian market for long.

Tea industry sources draw attention to another point. Egypt, and also Pakistan to some extent, must have realised by now that too much dependence on one country for supply of tea is not always in the best interest of the buyers. Both the countries depended too much on Kenya and last year's crop failure in that country did teach them the dangers of over dependence on one country.

Workshops planned

Meanwhile, the Tea Board, according to the Chairman, would shortly hold workshops in tea producing areas to emphasise the need for stepping up production of orthodox tea as a means to boost exports. Right now, the orthodox variety accounted for an estimated 70 million kg out of the total production of 955 million kg. The share must increase, he observed. Except Egypt, Britain and Pakistan, other major buyers of the Indian tea generally preferred the orthodox variety.

He referred to the several incentive schemes already available for producing more of the orthodox variety and these included 25 per cent subsidy on plant and machinery for the dual scheme (i.e. for producing both CTC and orthodox) and the incentive for training. There was another incentive scheme, already in force for producing orthodox and it would be continued in the 11th Plan, he added.

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