Pakistan imports Indian tea as Kenyan output drops
KOLKATA: Pakistan's dependence on Indian tea is gradually increasing. This year, Pakistan has imported 20 million kg of CTC teas from India, which is one of the highest in recent years. A drop in Kenyan production has also helped India to strengthen its position in the Pakistani market.
A trade delegation from Pakistan Tea Association will be visiting India in April during which long-term business deals are expected to be clinched.
Pakistan is largely a market for the CTC variety and said to be the second largest importer after Russia. The country's total official tea import volume is around 120 million kg. But tea industry sources say that a high import duty results in additional tea making its way into the country through grey channels. Almost 65%-70% of its total official tea import comes from Kenya, while India accounts for 15%. But with Kenyan production down by almost 9% to 259.77 million kg, India has an edge this year.
"Pakistan has been a good buyer so far from south India and is even buying from north India as well. The strengthening of the dollar against the rupee has also made Indian tea competitive in the Pakistani market," said Azam Monem, whole-time director, McLeod Russel India.
"Per capita consumption of tea has reached 1kg per annum and this is expected to go up further," said CS Bedi, chairman of Indian Tea Association. "We had been trying to develop business relationship with Pakistan over quite sometime now. Political tensions between the two countries have not marred our effort and over the years exports has been increasing to Pakistan," Bedi said.
India is now offering Pakistan a wide array of tea blends at different price points.
Pakistan imports Indian tea as Kenyan output drops - The Economic Times
KOLKATA: Pakistan's dependence on Indian tea is gradually increasing. This year, Pakistan has imported 20 million kg of CTC teas from India, which is one of the highest in recent years. A drop in Kenyan production has also helped India to strengthen its position in the Pakistani market.
A trade delegation from Pakistan Tea Association will be visiting India in April during which long-term business deals are expected to be clinched.
Pakistan is largely a market for the CTC variety and said to be the second largest importer after Russia. The country's total official tea import volume is around 120 million kg. But tea industry sources say that a high import duty results in additional tea making its way into the country through grey channels. Almost 65%-70% of its total official tea import comes from Kenya, while India accounts for 15%. But with Kenyan production down by almost 9% to 259.77 million kg, India has an edge this year.
"Pakistan has been a good buyer so far from south India and is even buying from north India as well. The strengthening of the dollar against the rupee has also made Indian tea competitive in the Pakistani market," said Azam Monem, whole-time director, McLeod Russel India.
"Per capita consumption of tea has reached 1kg per annum and this is expected to go up further," said CS Bedi, chairman of Indian Tea Association. "We had been trying to develop business relationship with Pakistan over quite sometime now. Political tensions between the two countries have not marred our effort and over the years exports has been increasing to Pakistan," Bedi said.
India is now offering Pakistan a wide array of tea blends at different price points.
Pakistan imports Indian tea as Kenyan output drops - The Economic Times
