Pakistan is expected to import at least 30 million kilograms of tea from India this year as drought has damaged crop and pushed up prices in Kenya, the major exporter of the commodity to the country. India, the world's largest tea producer and its biggest consumer, has been looking for new markets after its exports dropped lately.
Last year, Pakistan bought about 9.5 million kilograms of tea from India. A team of importers from Pakistan visited India in April this year to explore the possibility of buying more tea, officials said here.
They added the importers were satisfied with the quality of both black and green tea produced in India and buying would start soon. Pakistan has traditionally bought 80 percent of the 170 million-kg tea that it consumes annually from Kenya, but bad weather had hit the east African country's output and lifted the prices to about $2.1 a kg from $1.71. Whereas, Indian tea prices have remained unchanged at about $2 per kg.
Kenya's output in the first four months of 2006 fell by 34 million kg compared to last year, but the production has risen in March and April. The east African country produced 328 million kg of tea in 2005, and it has forecast production to fall to about 300 million kg in 2006.
India, which exports about 200 million kg of black tea and 3 to 4 million kg of green tea to 65 countries, also saw its exports dropping in the first quarter of 2006 due to bad weather and lower output.
The officials are expecting that a price differential between Kenya and India will not push up the commodity's rate in Pakistan, but the situation may be contrary.