Despite tensions, tea exports to Pakistan may rise in 2019

Industry executives said that since Kenya’s tea crop had declined owing to a severe drought, prices shot up 15-20% at the Mombasa auction.

BCCL
Nearly 80% of the tea exported to Pakistan is from southern India while the rest is from Assam.
KOLKATA: India’s tea exports to Pakistan are expected to increase to 20-25 million kg in 2019 from 15.83 million kg in the previous year, the tensions between the two countries over the Pulwama terrorist attack and the subsequent air strike in Balakot notwithstanding.

Industry executives said that since Kenya’s tea crop had declined owing to a severe drought, prices shot up 15-20% at the Mombasa auction. “This has prompted Pakistan to import more teas from India,” said DP Maheshwari, MD, Jay Shree Tea & Industries.

Nearly 80% of the tea exported to Pakistan is from southern India while the rest is from Assam.


Last year, Kenya had produced a record crop of 492.9 million kg, leading to a fall in tea prices in the global markets and impacting Indian teas as well. But this year, the crop in Kenya will be much less.

Sujit Patra, secretary, Indian Tea Association (ITA) said: “Payments from Pakistan are regular and Indian tea exporters have not faced any problem over payment. The country is buying good volumes of Indian tea, and if this trend continues, we hope to achieve 20-25 million kg of tea exports this year.”

Pakistan had recorded a massive 35.8% increase in per capita consumption of tea between 2007 and 2016, according to the Food and Agriculture Organisation (FAO) of the United Nations. Currently, Pakistanis consume 172,911 tonnes of black tea, and the figure is expected to rise to 250,755 tonnes by 2027, as per FAO estimates.
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