Union commerce ministry has asked the tea industry to go ahead with exports to Pakistan but refused to be a part of the deal. Though there was some ambivalence in the industry on whether to include a ministry official in a future delegation to the country, but the ministry has explained its stand and wants the industry to go ahead on its own.

"While the industry had felt that a commerce ministry representative would offer a comforting hand, the latter feels that given the present political scenario and relations between the two governments, the purpose is best served without government involvement," senior industry officials said. Trade should take its own initiative, is the consensus adopted at the recent meeting between the Tea Board, commerce ministry and tea industry representatives.

The Pakistan Tea Association has been in touch with its Indian counterpart over the past four months and has indicated its keenness to pay host to an Indian delegation. "We have been invited and will go to Pakistan in January," the official said.

The ministry has asked the industry to attempt incremental exports to Pakistan, which is a 130 million kg strong market. Per capita consumption of tea in Pakistan is among the highest in the world at 1.5 kg per annum and is twice that of India. At present, it source 70 per cent of the teas from African countries, with Kenya as the dominant player.

"There is no reason why we will not make a headway. We have a 10 per cent price advantage over Kenyan tea. What is needed is to alter the mindset of Indian exporters," the officials said. Among other issues that worry exporters are past instances when the government placed embargo on dollar trade following poor foreign exchange position. The prevalent feeling is: when Pakistan cannot pay for missiles, it stops remittances.

However, many in the industry feel that it is now or never for Indian tea's entry into Pakistan. "Rumors are agog about Pakistan being interested in developing tea with help from China. There are many regions, specially in the North West Frontier Province, where climate is conducive to tea cultivation," they added. (08/11/2000)

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