Tea exports to Iraq hit new high

Sri Lanka has become a direct tea supplier, in addition to being the dominant tea supplier to Iraq - the fifth largest buyer of 'Pure Ceylon Tea' in the world.

"I have been given to understand that our direct shipment of' 'Pure Ceylon Tea' to Iraq have, in terms of value, increased by 66 percent in 2011 to $68.6m from 2010's $ 41.3m.

In terms of volume, it has increased to 22,624 metric tonnes from 13,052 metric tonnes in 2010.This huge growth shows that tea transhipment levels are falling, giving us the benefit of becoming the direct supplier in addition to being the dominant supplier to Iraq's $ 170m annual tea import market," an official of the Industry and Commerce Ministry said.

This was a sequel to the July 30 high level discussions held with top ranking officials from several Ministries, Boards and Chambers at the preparatory meeting for the forthcoming eighth session of the Iraq-Sri Lanka Joint Committee for Economic and Technical Cooperation (ISLJECT).

The eighth session of ISLJECT will be held in Baghdad, Iraq in October this year.

Representatives from the Department of Commerce and the EDB under Minister Bathiudeen, the Ministries of Finance, Higher Education, Economic Development, Labour and Labour Relations, Justice and the Sri Lanka Tea Board, Bank of Ceylon, Sri Lanka Ports Authority, and the Chamber of Commerce and other officials were present.

"This is a welcome development in our Middle Eastern market penetration efforts and this is important not only regarding tea, but regarding overall penetration levels as well" Minister Bathiudeen said.

The Minister was also informed by representatives of the Tea Board that due to some technicalities of the Iraqi banking system, the Iraqi market was buying 'Pure Ceylon Tea' via Jordan, UAE, Dubai or Kuwait, rather than directly purchasing from Sri Lanka.

During the July 30 session, Tea Board representatives told Minister Bathiudeen that the Government's decision to remove tea from the list of rationed items in mid-2010 paved the way for the private sector to engage in the Iraqi tea business. While a 76 percent increase was recorded in terms of volume and value, direct tea shipments had jumped by 66 percent in 2011 to $ 68.6m from 2010's $ 41.3m. Iraq was the fifth largest buyer of 'Pure Ceylon Tea' in the world and the fourth largest Pure Ceylon Tea buyer in the Middle East (World's leading Pure Ceylon Tea buyer being the Russian Federation and the Middle East's leading buyer being Iran).