Soaring prices of top quality tea, particularly Kenyan brands, are giving rise to import of low-quality tea in the country and traders feared that the trend may risk the market pricing mechanism. Talking to Business Recorder, a tea import, Abdul Hakeem feared the growing import of cheap tea may reach to a new high soon.
"The influx of low-quality tea has surged significantly in Pakistan. The import cost is between $1.5 and $2.5 per kilogram," he said. Packers and blenders said that India and Indonesia now had a greater share in the import of cheap varieties in the country. They said a number of varieties were available in local markets. Sources said that the overall tea imports in Pakistan declined by 24.72 percent during the first two months of the current fiscal year because of smuggling, which was still on the rise despite a sharp cut in sales tax on imports by the federal government.
They said that around 30,000 tons of low-quality tea was imported legally from various countries over the past six months in which Indian varieties had a major share. Traders said that due to drought-like conditions in African countries, including Kenya and Uganda, prices of superior varieties of tea witnessed a sharp increase on international markets during the past few months.
Pakistan imports tea from 21 countries and a major portion was imported from Kenya. Sources said that Kenya lost millions tons of tea production because of its adverse weather conditions. India emerged as second major contributor in meeting Pakistan's black tea demand with a 21.06 percent share in imports. Tea imports from India surged by as much as 200 percent between July 2008 and July this year.
"Prices of Indian and Indonesian varieties are very low which encouraged importers to import tea from these countries. Varieties imported from these countries are of low quality," a trader said. According to him, tea imported from India and Indonesia costed $1.44 and $2.29 per kilogram, respectively, while prices of Kenyan tea varieties were much higher - above $3.19 per kg.
Total consumption of green tea in 2011-2012 stood at 3,307,704 kilograms. Pakistan imported 71 percent of its total consumption from Vietnam, 21.73 percent from India and 7.19 percent from Indonesia. Sources said that low quality varieties were adulterated by mixers. Sources low-cost tea was being sold in various areas of rural Sindh after being adulterated with different non-food substances to change its colour and taste. They said such a blend posed a serious health risk.
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