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India aims to double tea exports to Pakistan in 3 years

11 Apr 2012 Evaluate

Taking a step further towards improving bilateral trade, the Tea Associations of India and Pakistan have signed a memorandum of understanding (MoU) to double the export of Indian tea in the next three years. As per the MoU, India will more than double its exports of tea to the neighboring nation by 2015.

Pakistan is the world’s second-largest importer of tea. Pakistan’s total tea consumption is about 225 million kg, of which 120 million kg is imported while the rest is through grey route. Kenya is the largest contributor and exports about 135 million kg to Pakistan whereas India exports only about 24 million kg. However, the price of Kenyan tea is much higher than Indian tea. Hence Pakistan is keen to improve its imports from India.

India currently exports 24 million kg of tea to Pakistan and is looking at increasing it to 50 million kg. This will amount to an increase of 108%. India is keen on pushing the Dooars and Assam CTC to the Pakistani market which is currently a big consumer of South Indian tea. Pakistan is also considering bringing down the import duty on tea from the current 10% level. 

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