Tea promotions planned abroad

The Union ministry of commerce and industry is looking to rope in corporate India for promoting tea and coffee abroad.

Tata Tea and Tata Coffee, among others, will promote Indian tea and coffee in Russia, where the country has been losing ground. Addressing a press conference after the Indian Tea Association's (ITA) annual general meeting, Union minister of state for commerce and industry Jairam Ramesh said, "Tata Tea and Tata Coffee with some other institutions would promote Indian tea and coffee brands in Russia through a new enterprise."

Though Russia is the second largest market for Indian tea, the consumption pattern has been changing in favour of orthodox tea. "It has become prosperous and discerning, and we need to promote Indian brands there," said Ramesh.

Percy Siganporia, managing director, Tata Tea, said, "We have not decided on any brand, as yet." However, he added that Tata Coffee was the largest coffee exporter to Russia.

Ramesh also said that the ministry had sent a proposal to the Oberoi group for setting up a tea marketing centre in its existing property in Egypt. The tea marketing centre would sell and promote Indian tea.

The Oberoi group may come in as a joint venture partner in the project. "We have received a favourable initial response," said Ramesh.

Egypt, Pakistan and Iran have been identified as major emerging markets for Indian tea exports. However, experts feel that an appreciating rupee could hit exports to these price sensitive markets.

Basudeb Banerjee, chairman, Tea Board of India, said, "These are price sensitive markets, and the rupee appreciation could hit our prospects in these markets."

The tea export target for the year was around 210 million kg, Banerjee said. During January-June, exports were down by 15 million kg and the target of 210 million kg looks difficult to achieve. Last year, though the country clocked 210 million kg in gross exports, discounting re-exports, net exports accounted for only 186 million kg.