Tea Delegation To Leave For Pakistan

The Centre has approved the visit of a high-powered tea delegation to Pakistan to hold talks on tea exports, official sources said yesterday.

The approval had been given long ago but the visit has been delayed due to the time taken for completing other formalities, including visas, Union commerce ministry sources said.

India feels that its sagging tea exports could get a filip if it is able to garner even a small segment of the Pakistan tea market, which consumes about 1.2 lakh tonnes of the commodity.

At present, Pakistans tea requirements are met through exports from Sri Lanka and Kenya. Taking a delegation to Pakistan is the first step contemplated by India to attract the Pakistan market, sources said.

 

If the visas for the team are received in time, a 15-member delegation headed by tea board chairman S S Ahuja, and comprising leading Indian tea companies representatives, is expected to visit Pakistan next month.

Industry sources view the move to tap the potential in Pakistan as efforts to improve sagging tea exports, which declined to around 150 million kg during 1996-97.

Industry sources say the move to hold talks with Pakistan for tea exports comes at an opportune time when the Sri Lankan and Kenyan crop have suffered a setback due to drought.

The Kenyan crop has been reported to have declined by 40 per cent and the production shortfall in Sri Lanka has led to tea prices in the island nation to be quoted higher than Indian prices.

The high prices for tea in Sri Lanka has already forced the Commonwealth of Independent States (CIS) countries back into the south Indian tea auctions.

CIS countries had stopping taking part in south Indian tea auctions since last June in favour of Sri Lankan tea. Russia, in particular, had traded arms with Sri Lanka for tea.

Though there have been reports of crop shortfall in India, particularly in the Northeast, it has been more or less offset by good production during April and May, industry sources said.

Industry sources say Pakistan has been traditionally interested in Indian tea both for price and quality factor.

On the other hand, Indian tea companies are looking for new avenues for marketing their produce and move to hold talks with Pakistan is seen in this light.