India's tea exports to Pakistan up 73%

India's exports of tea to Pakistan jumped nearly 73 per cent to 6.4 million kg in 2003 from 3.7 million kg in 2002, even as the country's total exports during the first 11 months of last year came down 22.18 per cent.

Tea Board officials on Wednesday said the country's total exports during January-November 2003 had come down 22.18 per cent to 143.74 m kg from 184.72 m kg in the corresponding period of the previous year.

Exports during November, however, showed a marginal improvement of 9.78 per cent to 19.30 m kg from 17.58 mn kg of previous year, the official said.

"Exports to Pakistan increased to 6.4 mn kg between January and December 2003. Improved political relations between the two countries and a memorandum of understanding signed between Indian Tea Association and Pakistan Tea

Association in August 2003 were mainly responsible for the spurt," a senior ITA official said.

The two associations had signed an MoU wherein Pakistan was to import 10 m kg of tea annually from India. "We see a significant growth in export to Pakistan and it will be our main thrust market in 2004," the ITA official said.

Pakistan is one of the world's big tea importers, with total demand of about 140 m kg. It has been buying about 55 per cent of its requirement from Kenya.

Pakistan also imports about 6.7 m kg of tea from Rwanda, 8.5 m kg from Bangladesh, 8.0 m kg from Indonesia and about 3.0 m kg from Sri Lanka.

ITA official said tea export by Bangladesh to Pakistan was comparatively higher because of a bilateral treaty between the two countries.

"Under the treaty, there is no duty in Pakistan on tea imported from Bangladesh whereas Indian tea attracted an effective duty of about 49 per cent in addition to 20 per cent basic duty in that country," he said.

Following the signing of framework treaty on SAFTA in Islamabad, it is expected that duties would come down to zero to five per cent during the next 10 years and that would help the domestic tea industry.

The ITA official said Pakistan was mainly a CTC market and its taste and preferences were similar to that of Indian markets.