Indian dream to export 10 million kgs tea to Pak shatters.

KARACHI—The tea importers have slashed their orders to Indian traders keeping in view the consumers have disliked the taste and aroma of poor Indian CTC. Pakistani consumers who have almost established the taste of Kenyan CTC (cut, tear, curl) tea which is quite strong in taste, aroma and colour, the local blenders have, however, tried their best to blend Indian CTC with African tea but they failed in their quest to excessively increase Indian tea on persuasion of Indian exporters as Pakistani consumers rejected such types of blends with excessive Indian tea. The tea producers’ of Indiahad claimed to bring the export volume of the beverage to Pakistanduring 2010 to over 10 million kgs. This claim will however, remain a dream as it even fell to the previous level in 2009.

The demand of Indian tea in Pakistanduring the current fiscal is likely to reach a level of 3 million kgs as compared to 2.77 million kgs compared with 3.77 million kgs year-ago, trade sources said. During July-September 2009, exports declined drastically to 0.62 million gs while in the period during July-August 2008, the figure stood at 1.58 million kgs. In 2008, Indiaalso missed the target of exporting 10 million kgs to Pakistan. Exports fell sharply in the last quarter of the year.

Total exports stood at 7.67 million kg in 2008, though the figure was 5 million kgs by August, sources said. The tea importers have termed the low-grade CTC (crush, tear, curl) tea from as the major reason for the declining import of the most favorite beverage of Pakistani consumers. “The consumers here in Pakistanhave become more cautious for quality. India CTC is usually found with less color and low aroma and taste while the strong CTC from Assam is quite expensive and Pakistani consumers can not afford as compared to the price of Kenyan CTC”, a trader said. Indiacontributed 1.09 per cent to the Pakistan’s total imports in July and 1.76 per cent in August; in September, this shot up to 5.35 per cent.

“During the first half of the year, the export market was not favorable because of global recession, but Indian traders hoped to regain the pace of export to Pakistanin second half of the current fiscal. Though major importer of Indian tea – M/s Unilever Pakistan whose regional head office is in India is striving hard to increase Indian tea volume into its blending of major brands however, it is facing hardship from the consumers as extended level of blending of poor Indian tea may deprive Unilever its share in Pakistan’s tea trade.

Unilever holds the biggest market share of tea trade in Pakistan and if it compromises its brands with quantity, it certainly lose its share to its biggest competitor – Tapal who focuses more on African teas particularly Kenyan CTC. It is pertinent to note that Indian Tea Board and Indian Tea Association re focusing more on Pakistani counterparts by inviting Pakistan Tea Association (PTA) mainly dominated by Unilever’s personnel or its suppliers, to Indiain order to influence them to increase Indian tea import to Pakistan. PTA’s delegation comprising major tea importers from Pakistanhad also visited Hong Kong Tea Fair about a few months back but they could not negotiate orders with Indian traders due to higher prices but low quality. Pakistanis the world’s third-largest importer of tea with nearly 175 million kg of annual consumption and having very nominal share of home grown tea.

Source : dailymailnews.com