Pakistan to double Tea import from India by 2015

Kolkata: Close on the heels of Pakistan President Asif Ali Zardari's visit to India, a high-powered delegation from the Pakistan Tea Association (PTA) on Tuesday signed a memorandum with the Indian Tea Association (ITA) to import 50 million kg of tea by 2015. In 2011, Pakistan imported 24 million kg tea from India.

Pakistan is also open to the idea of promoting an India blend there with support from the Tea Board of India. The country is eager to import Indian packet teas and tea bags. Import duty on tea in Pakistan is 10% and its tea trade body has requested their government to cut it further.

A 13-member tea delegation led by PTA Chairman Mohammad Hanif Janoo met the ITA officials to discuss trade opportunities between the two countries. The tea industry representatives from the two countries met after a gap of five years. The delegation will also visit South India.

Addressing a joint press conference, Janoo said: "We have looked at various opportunities on increasing tea imports from India. Pakistan is a 220 million kg market and our consumption is going up at the rate of 2%. Pakistan is looking at importing quality tea from India."

Pakistan imports 135 million kg of tea from Kenya. It imported a record 24 million kg in 2011 from India against 19 million kg in 2010. It buys teas mostly from South India. Only about 4 million kg was exported from the tea gardens in north India. Pakistan also imports good volumes from Vietnam. Pakistan imports Indian tea at $3 per kg.

Kenya produced less tea this year due to a drought-like situation there. February production was down by 8 million kg and March production has declined by 3.5 million kg.

"Kenyan prices have also gone up due to less availability. Many nations depend on Kenya for their tea requirements. Next to Kenyan tea, comes Assam tea. Therefore, we will look at Assam tea also for meeting our internal demand," Janoo said.

ITA Chairman CS Bedi said: "We have received the MFN (most favoured nation) tag from Paksitan, which will spur movement of tea from India. We are hopeful that Indian tea exports to Pakistan will gradually increase."