Tea exports to Pakistan down 31 per cent to 22 million kg till July

NEW DELHI: India's tea exports to Pakistan fell by 31 per cent to 22 million kg till July this fiscal, as tea from Kenya has been succeeding in making inroads in the neighbouring country's market due to lower prices.


"Tea exports to Pakistan has fallen to about 22 million kg from 32 million kg in the April-July period last fiscal, as market in Pakistan is price driven," Federation of Tea Traders Association of India Vice-President Ramesh Chand Agarwal told reporters here.

Speaking at sidelines of the 'Delhi Tea & Coffee Festival' Agarwal added that despite fall in exports to Pakistan, the total exports this fiscal are expected to be at the 190 million kg, which is same as last year's level.

Pakistan is third largest market for Indian tea after Russia and China.

Kenya tea has replaced the Indian tea in the Pakistani market as they are offering tea at USD 1.20 per kg against India's tea of USD 1.80 kg, he said.

"Pakistan is crucial market for us, but it is price driven as they use tea as base material to mix it with different flavours and that is the reason Kenyan tea replaced the Indian tea there," Agarwal added.

Stating a optimistic outlook for the exports season this fiscal, Agarwal added that there is enough demand of different varieties of Indian tea especially from China, Russia and its neighbouring countries.

The tea production in the country has increased by 16 per cent to 155.06 million kg in July on account of higher output in West Bengal and Assam, according to Tea Board's estimate.