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Wednesday, August 13 1997

Indo-Pak tea trade set to brew again

PRESS TRUST OF INDIA

NEW DELHI, Aug 12: India will be reviving its tea exports to Pakistan following the successful visit of an Indian tea sector delegation to the country during the last week of July, according to Tea Board sources.

``We (India and Pakistan) have decided to maintain contact as a result of the visit after nearly 49 years,'' the sources said. Tea trade between India and Pakistan had stopped sometime in 1948. However, the sources refused to provide details about the exact quantity of tea contracted for exports to Islamabad.

``We cannot reveal (the quantity of tea contracted for exports to Pakistan). The Tea Board will send a report to the government, which will then make it public,'' they said.

Meanwhile, Pakistan, too, has accepted that the visit by the tea delegation was a successful one. Tariq Sayeed, G-77 chamber of commerce and industry chairman and former economic advisor to Pakistan premier Nawaz Sharief said the visit was a `result-oriented one.' ``The tea delegation signed many contracts. It is a very positive step towards reviving tea trade,'' said Sayeed, who was here to hold discussions with federation of Indian chamber of commerce and industry (Ficci).

Official sources said the tea delegation was scheduled to visit Pakistan during the beginning of this year but it was delayed due to procedural formalities, including obtaining visa. Pakistan is the second largest global consumer of tea with over 150 million kg of tea being consumed.

The tea sector hopes that India's sagging tea exports would get a fillip even if a small segment of the Pakistan market could be won over, the sources added.

Currently, Pakistan's tea requirements are met through imports from Kenya, which enjoys a major share in the market, besides Sri Lanka and Indonesia. The thrust for tea exports to Pakistan has also come at an opportune time when Sri Lanka, Kenya and Indonesia are facing a decline in the domestic production due to drought in those countries.

With India's tea production estimated at last year's level of 780 million kg, the prices offered by the country are also far more competitive than the other competing countries, particularly Kenya and Sri Lanka, according to the official sources.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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