Tea trade with India

The memorandum of understanding signed between the Indian Tea Association and the Pakistan Tea Association recently, for sale of 10 million kg of black tea to Pakistani importers and packers, amply demonstrates the enthusiasm with which the visiting 11-member ITA delegation pursued their objective.
For it would recall to one's mind the culmination of a similar accord in July last year, during the visit of a 14-member Indian delegation.
This, of course, has reference to its provision for export of the same quantity of tea in 2003-2004, depending upon PTA's satisfaction with quality and prices. However, the effort met with only partial success, as it led to import of 6.4 million kg during July-April 2003-2004, though depicting a substantial improvement over the import of three million kg in the corresponding period of the preceding year.
Seemingly encouraged by the increase and attributing it, among other factors, to their frequent interaction with traders and blenders in this country, ITA delegation leader, Chandrakumar Dhamuka said the shortfall was only due to the Pakistani buyers' concern over prices.
However, although the prospects of import of Indian tea have improved to a certain extent, the suppliers' idea of a big boost appears to be still far away.
According to one provision of the MoU, they expect PTA to ensure that the volume of tea imports from India reaches the level of 25 million kg over the next two years.
That this is unlikely to happen should become evident from the lack of enthusiasm on the part of Pakistani importers.
In this regard, it will be noted from the remarks of PTA Chairman that the MoU does not make it binding for Pakistani traders to import tea from that country.
More to it, he is also reported to have pointed out that no deal, contract or agreement to this effect was signed during the Indian delegation's stay in Pakistan. However, he did note that the Indian side was quite keen on completing specific deals with Pakistani blenders and packers.
As for the latter's reluctance, in this regard, he made a pointed reference to the comparatively high prices of the Indian product, on the one hand, and to the difference in the taste and preference of the consuming public in Pakistan for the teas it had become used to over long decades.
It will thus be noted that Indian tea producers, blenders and packers will have yet to work hard to make their products match the tastes and preferences of the consumers in Pakistan, notwithstanding all their claims of superiority.