The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), comprising seven Nations — Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand — has been operational for 26 years but its actual potential remains unexplored.
BIMSTEC has a vast potential for development having 1.68 billion people or 22 per cent of the world population for shared economic and social progress and a combined GDP of nearly $3 trillion. With the renewed importance of BIMSTEC, signing of the Charter in Colombo has led to BIMSTEC being recognised as an international organisation.
BIMSTEC offers India an opportunity to reinforce ties with its Eastern neighbours in conformity with India’s key foreign policy priorities — the Act East Policy and Neighbourhood First Policy. It acts as a bridge between South and South-East Asia.
BIMSTEC countries are important to India’s tea industry.
Total import of tea, barring India, to BIMSTEC countries is around 24/25 million kg. Indian tea export to these countries is miniscule around 4 million kg around 18 per cent. So there is huge scope to double Indian tea exports in the near future.
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Cultural, political ties
India has good cultural and political ties with BIMSTEC countries.
Large Indian diaspora’s presence and geo-political closeness provide good opportunity to boost tea exports.
There is good scope for India to increase its share in the BIMSTEC markets as it makes and exports a bouquet of teas — Orthodox, CTC, Green Tea, White, Oolong, etc and speciality to over 100 countries at various price points.
India can easily target 10 million kg of tea exports in a calculated way by next two years to BIMSTEC countries.
This may be possible if the Centre could take up with its counterparts for targeted Free Trade Agreement (FTA) or Preferential Trade Agreement (FTA) for Indian Tea and execute it through focused promotion initiatives.
Bangladesh, Myanmar and Thailand are potential markets for Indian tea. Primary selling points for Indian tea as identified are:
(a) Easy logistics for geo-political closeness, availability and adoption of cross border e-commerce.
(b) Large number of Indian diaspora in BIMSTEC countries.
(c) The health benefits of tea can attract a younger demographic, which can increase the demand for tea in the near term.
How India can achieve the target of 10 million kg, say, by next 2-3 years?
(i) Like millet diplomacy, India should initiate Tea diplomacy with BIMSTEC countries. The Centre and Tea Board will need to play a key role here.
(ii) More specifically India needs to negotiate FTA or PTA for tea with Bangladesh, Myanmar and Thailand in line with the special PTA signed in 2005 with Sri Lanka. If this can be achieved, only Bangladesh can provide big opportunity for Indian tea. Just few years back Bangladesh used to import around 10/12 million kg from India, which has now come down to below 1 million kg.
(iii) Sustained promotion campaign, exchange of delegations, road shows, BSMs, etc.
So, there are lot of scope and opportunities for the Indian tea industry to boost exports. Making the 30 billion population of BIMSTEC countries (excluding India) drink one more cup of tea will give a big boost to the Indian tea industry.
The writer is a Tea Marketing Expert & Former Secretary, Indian Tea Association
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