NEW DELHI, Feb 5 Asia Pulse - India's tea industry has drafted an in depth strategy to increase exports to 250 million kilos by 2004, including exploring new markets and seeking imposition of duties to the bound levels permissible under the World Trade Organisation.

"By exploring new markets, promoting generic aspects of tea, lobbying for an industry friendly duty regime and focussing on a quality oriented production, the industry has set a target to export 250 million kgs of tea annually within the next three years," Chairman, Indian Tea Association, (ITA) R'S Jhawar told PTI here.

He said ITA has identified Pakistan, France, Canada, United States and Middle East as the future growth markets and sent business delegations to these countries.

The response has been positive and the results would be evident in the coming tea season, he said adding that good quality, timely delivery and large varieties would be the unique selling points for the product.

India exported around 198 million kg of tea in the calender year 2000 which was seven million kg more over the previous year. In value terms India exports tea worth Rs 20 billion, he said, adding that the total turnover of the industry was Rs 60 billion (US$1.29 billion).

"We also demand that the duty should be increased to the 150 per cent bound rate permissible under the WTO or at least increased to 100 per cent in order to control flood of imports into the country once QRs are lifted," he said.

Asia Pulse
Monday, 5th February 2001

Akbar Brothers Group became the country's top tea exporter in the year 2000, with exports totalling 32.4 million kilogrammes, according to Customs statistics just published. Akbar Brothers has also generated the largest foreign exchange earnings totalling RS. 6.2 billion. The Stassen Group has been ranked as the second largest exporter of tea with exports amounting to 22.6 million kilogrammes and foreign exchange earnings totalling Rs. 3.6 billion. The two transnational firms, Van Rees and Unilever ended the year with exports totalling 20.9 million kilogrammes and 19.3 million kilogrammes respectively.

Akbar Brothers has also been ranked as the largest exporter of value-added tea packets and tea bags totalling 14.5 million kilogrammes. In addition to 14.5 million kilogrammes shipped by us in packs and bags weighing less than three kilogrammes, we market another 15 million kilogrammes of teas in value-added form in packs weighing over three kilogrammes. These products are largely marketed under our own brands and carry the Lion Logo - the flag bearer of Ceylon teas. Our markets are widespread - Middle East, Europe, USA, Australia, North Africa and CIS countries," said Tyeab Akbarally, Director Akbar Brothers Group.

The Year 2000 has been a record year for Sri Lanka's tea industry, benefiting all segments of the industry. Tea production rose to 305 million kilogrammes, exports reached an all-time high of 288 million kilogrammes and the foreign exchange earnings from tea totalled Rs. 53 billion. These achievements are unparalleled in the history of Sri Lanka's Tea Industry, he said.

"The quality and image of Ceylon Tea is the prime strength of the Sri Lanka tea industry. We have to build on this strength. The manufacture of quality tea, value-addition in the form of packaging and branding are the key factors for the future sustainability of the tea Industry," Mr. Akbarally said.

Asked about the outlook for the current year, Mr. Akbarally said that prices are likely to remain buoyant during the first half of 2001, if not beyond. "The demand from the Middle East and CIS countries, which are the main destinations for Sri Lanka teas, is likely to remain firm with high oil income derived by the Middle East countries and with the stable conditions returning in CIS countries."

"The transformation from commodity trading to the export marketing of value-added tea products is an uphill and challenging task. It requires considerable investment outlay and risk-taking. The government has assisted the export sector by fiscal incentives and promotional support to promote exports of value-added products. The importation of packing materials for export purposes, capital and Intermediate goods used for production for exports are all exempted from import duties and GST. The export processing procedures in the Customs, Tea Board and other Government Agencies have also been simplified and the emphasis is now laid on facilitation and not on control of exports," Mr. Akbarally said.

Monday 05,February 2001 Daily News- Sri Lanka

The tea industry could look forward to a helping hand in the coming Budget.

The Union Commerce and Industry Mr. Murasoli MAran addressing the symposium of the United Planters Association of South India Tea Research Foundation (UPASI TRF), here on Monday, said the budget would address some of the Industry's demands. The Ministry was aware that the industry wanted a hike in import duties, reduction in excise duty and the question of regulating tea imported for further processing and re-export, he said.

Similarly, the tea industry, too, should address the issue of high retail prices. While growers complained about low tea prices, the retail prices had not gone down even at the production centres, he observed.

UPASI should also help dispel the misconception among the farmers regarding imports from Sri Lanka. Imports in the current year stood at 0.47 million kg as of November, 2000, compared to 50 million kg last year, he said.

The Centre was considering a proposal to work out a 'price stabilisation arrangement' for a number of cash crops, including tea. But such measures could succeed only with the co-operation of trade and the farmers. However, experience had shown that these measures had only met with limited success, and the farmers would have to organise themselves on professional lines to tackle the market challenges, he said.

In the face of increased pressure on commodity prices internationally, and oversupply, the stress should be on increasing productivity and value-addition. The country's share in world trade had dropped from around 30 per cent in 1970 to about 12 per cent now. Export performance during April - December, 2000 was Rs. 1,375 crore, 12 per cent lower than that of the previous year, he said.

Mr. Maran expressed concern that the share of value-added tea exports to total exports had also not registered an increase.

The BJP Member of Parliament, Mr. Master Mathan, urged the Centre to hike import duty of tea to 100 per cnet from the present 35 per cent and exempt corporates from the tea duty imposed in 1998. While small growers had been given concessions, the corporates had not been given a helping hand. They were unable to even the wages to the workers, he said.

The symposium also marks the platinum jubilee of the UPASI TRE. The foundation released a new tea cultivar, TRF-I, capable of yielding more than 10,000kg made-tea per hectare.

The Hindu Business Line
Tuesday, 6th February 2001