Smooth sail for Indian tea to Pak post new protocol
The tea industry has set a mid-term goal of achieving a 20 million kg of tea exports to Pakistan in two-to-three years.
By TNN |
KOLKATA : The tea industry has set a mid-term goal of achieving a 20 million kg of tea exports to Pakistan in two-to-three years. In 2006, India exported nearly 15 million kg of tea to Pakistan, which is a CTC tea consuming country.
Tea exports to Pakistan is expected to get a fillip following the signing of Indo-Pakistan Shipping Protocol. This protocol will enable Indian flag vessels to anchor at Karachi Port.
Addressing newspersons after a week-long visit to Pakistan, Tea Board chairman Basudeb Banerjee said: “We had detailed discussions with the Pakistan tea trade on how to enhance movement of tea between the two countries.
Discussions were also held at the Pakistan government level. Signing of Indo-Pakistan Shipping Protocol is a significant step to boost trade between the two countries. A number of things need to be done to improve trade between the two countries.”
The Tea Board chairman had led a 13-member delegation which includes members of large tea companies like McLeod Russel, Tata Tea, Warren Tea among others, merchant tea exporters and members of Indian Tea Association. They were in Pakistan in the last week of April.
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During their visit, the Indian tea industry has sought lowering of import duty by Pakistan. The basic customs duty on tea imports from India was 10%. Besides basic duty, other rates in the forms of income tax and general sales taxes in Pakistan pushes up the effective duty on tea to 33%. Mr Banerjee said that Pakistan Tea Association (PTA) and several chambers of commerce in that country were lobbying with the government in this regard. Pakistan is a 170 million kg market and Kenya is the dominant player. “In 2006, India became the second largest exporter to Pakistan. And we would like to maintain our position,” said Gautam Bhalla, head of the Pakistan desk at ITA.
Added Manojit Dasgupta, secretary general at ITA, “Pakistan is increasingly becoming a packet tea market. Apart from Unilever and Tapal, a number of regional packeteers have emerged.”
Tea Board chairman said the Railway Board had shown considerable interest in kicking off a dialogue with its Pakistani counterpart for cargo movement by rail through Attari-Wagah. Tea Board has also mooted a India Tea Centre at Karachi for showcasing Indian teas from the various regions like Assam, Nilgiris and Dooars.
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