The south India tea industry will try to convince Pakistan to buy higher value products when a trade delegation from the neighbouring country visits during the weekend. This will be instead of the usual cheaper varieties that they prefer to source from here.
A 13-member tea delegation that is currently on a visit here will begin its tour of the southern region on Friday. The team is headed by Mr Mohammed Hanif Janoo, Chairman of Pakistan Tea Association.
According to sources, Pakistani buyers are looking for cheaper teas from India, especially the South, costing around Rs 50-60 a kg. But the tea industry in India is not interested in selling cheaper teas anymore. It is likely that the industry will try and convince the delegation to buy teas costing around Rs 100 a kg.
It is likely that the Pakistani delegation won't get to see cheaper tea this time during their visit, said sources. What Pakistan buyers do is to purchase cheaper south Indian CTC (crushed, tear and curl) teas and blend them with Kenyan CTCs.
The Indian tea industry, in general, is aggrieved that while Pakistan is willing to pay a higher price for tea from Kenya, it is offering a low price for Indian tea.
As it is, south Indian tea is cheaper compared with north Indian, Sri Lankan and Kenyan teas.
Tea-tasting
A tea-tasting session will be held for the Pakistani delegation on Saturday, according to the United Planters Association of Southern India (Upasi).
“In the morning, a tea-tasting session will be held in which the Pakistan team will get a first hand knowledge of teas growing in various regions in the South,” said Mr Ulhas Menon, Secretary-General of Upasi.
“In the afternoon, the visiting delegates will get to taste teas from individual estates through a one-on-one interaction,” he said. “The tea-tasting session for the region will be held as tea grown in higher, medium and lower ranges,” said Mr N. Sriram, Director of Contemporary Tea Brokers, said.
Teas produced in Nilgiris (Tamil Nadu) and Munnar (Kerala) are from higher ranges, while those produced in Wayanad (Kerala), Gudalur and Anamalais (both in Tamil Nadu) are from medium ranges.
Tea produced in the central Travancore region of Kerala comprising Peeramedu and Vandiperiyar are from lower ranges.
On Sunday, the Pakistani team will visit tea estates in Valparai in Tamil Nadu's Coimbatore district.
Tea export to Pakistan is projected at a record 23.7 million kg (mkg) during 2011-12 (22.07 mkg). Shipments to the neighbouring country have trebled since 2009-10 when it was 7.88 mkg.
There is increased interest from the Indian side to make a major impact in the Pakistan market after the Yusuf Raza Gilani Government said it would extend the most-favoured nation status for trade.
Currently, India is at a disadvantage in exporting tea to Pakistan as Customs duty, value-added tax and income tax make up nearly 30 per cent.