India to set up tea centre in Pakistan

Move over diplomacy. It looks the tea-relations between India and Pakistan is going to excel in the days to come, better than their diplomatic relations.

India's tea industry has set a mid-term target of achieving a 20 million kg of tea exports to Pakistan in two-to-three years. India will also set up a Tea Centre at Karachi to showcase Indian teas from the various regions like Assam, Nilgiris and Dooars.

"We are upbeat on the export of tea to Pakistan," Tea Board chairman Basudeb Banerjee told reporters after a week-long trip to Pakistan.

The Tea Board chairman had led a 13-member delegation which includes members of large tea companies like McLeod Russel, Tata Tea, Warren Tea among others, merchant tea exporters and members of Indian Tea Association. They were in Pakistan in the last week of April.

During their visit, the Indian tea industry sought lowering of import duty by Pakistan. The basic customs duty on tea imports from India was 10 per cent. Besides basic duty, other rates in the forms of income tax and general sales taxes in Pakistan pushes up the effective duty on tea to 33

per cent.

He said in 2006, India exported nearly 15 million kg of tea to Pakistan. "It is going to go up steadily in the next two three years," he pointed out.

Banerjee hopes that tea exports to Pakistan will get a fillip following the signing of Indo-Pakistan Shipping Protocol. This protocol will enable Indian flag vessels to anchor at Karachi Port.

Banerjee who held discussions with Pakistan government officials said: "Signing of Indo-Pakistan Shipping Protocol is a significant step to boost trade between the two countries. A number of things need to be done to improve trade between the two countries."

Pakistan is a 170 million kg tea market and Kenya is the dominant player. "In 2006, India became the second largest exporter to Pakistan. And we would like to maintain our position," said Gautam Bhalla, head of the Pakistan desk at the Indian Tea Association.

The Tea Board has also mooted a India Tea Centre at Karachi for showcasing Indian teas from the various regions like Assam, Nilgiris and Dooars.