Exporters hail Iraq's move to import Ceylon Tea directly

Tea exporters commended the move by the Government of Iraq to import Ceylon Tea directly for the first time which will boost tea exports to the country and recapture the market. Iraq, a top Middle Eastern buyer of Ceylon Tea curtailed imports due the ongoing turmoil in the country. Iraq imports a large quantity of tea in bulk form from Sri Lanka.

The Middle east is a major market for Ceylon Tea. Chairman of the Tea Advisory Committee of the Ministry of Trade and Commerce Rohantha Athukorala said that given the direct importing facility Sri Lana must develop strong brands on a public-private partnership to retain its top export markets.

Tea has been a major export item to Iraq accounting for about 95 percent of Sri Lanka's exports to Iraq, with an estimated 15,000MT of Ceylon tea is being exported indirectly through Dubai, Jordan and Kuwait.

"We are pleased with the move by the Iraqi government despite many obstacles to import Ceylon Tea directly from Sri Lanka" exporters said.

The decision to import Ceylon Tea directly and lift the ban on coco peat was taken following trade talks held between Sri Lanka and Iraqi officials last week. The eighth session of Sri Lanka Iraq Joint Committee for Economic Cooperation (JEC) was held in Baghdad. According to statistics the value of trade between the two countries that stood at US $ 8.72 million in 2003 topped US $ 89.99 million last year. Sri Lanka exported goods to the value of US $ 89.80 million to Iraq and imported goods of US $ 0.19 million from Iraq in 2013.

Ministry of Trade and Commerce sources said that Iraq has also agreed to facilitate direct tea imports

from Sri Lanka and called upon Sri Lankan suppliers to build direct links with the tea buyers in Iraqi.

He said that the the removal of import ban imposed on Sri Lankan coco peat to Iraq is an outcome of the Baghdad session. However Sri Lanka's coco peat exports that were US $ 1.07 million increased to US $ 27.9 million in 2012.

The representatives of horticulture industry of Sri Lanka, coco peat exporters and Lankan horticulture exhibitors participated in the discussions.

The Iraqi State Trading Corporation has expressed its willingness to buy 13 other selected export items from Sri Lanka including rubber tires, stationary and papers, electrical wires and cables, generators and accessories, apparel and textiles, households appliances, toys, foodstuff and coverings for trailers.

LF