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| Sunday, 26 June 2005 |
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Regaining Pakistan's tea market an uphill task by Elmo Leonard Sri Lanka is up against a Himalayan task to make an impact in regaining the tea market she lost in Pakistan over two decades ago, in spite of the mid-June Free Trade Agreement (FTA) binding the two South Asian nations. Under the Pakistan-Sri Lanka FTA, Lanka gets duty free access to 10,000 tonnes (10 million kilograms) of tea to its subcontinent neighbour. In 1981 Pakistan imported 21 million kilograms of tea from Sri Lanka out of a total of 76 million kilos she imported that year, making Pakistan the largest importer of tea from Sri Lanka, accounting for 12 percent of total exports from the island. Comparable grades of Ceylon orthodox and Kenyan CTC teas, show the Ceylon varieties priced higher, notwithstanding the now prevalent duty free structure binding the SAARC neighbour, Anil Cooke from Asia Siyaka, (brokers) in Colombo, said. Moreover, more than 75 million kilos of Pakistan's 120 million kilo annual tea consumption is Kenyan and other African origin supplied. Kenya's exports of tea to Pakistan in 2004 accounts for 84 million kilos, according to Kenyan Customs statistics. Kenya also shows a further 29 million kilograms of tea to have reached Pakistan that year. It is accepted in international tea circles that Kenyan tea reaches Pakistan through informal channels. Pakistan has grown to be the world's third largest importer of tea, behind UK and Russia, according to international tea statistics. Over 20 years, Pakistan has cultivated a taste for African CTC teas and the higher cuppage it brings with it. Now, Sri Lanka counts three million kilos of tea exports to Pakistan, annually. "We will have to try entering with value added teas," Cooke said. Pakistan's economy is growing and so is her affluent class. In the late 1980s Ceylon low growns gained the favour of Middle Eastern nations. In the early 1990s with the disintegration of the USSR, Ceylon high and mid growns came under increasing demand from Russia and the CIS nations. At that time, Pakistan grew very price conscious and Kenya stepped in with its CTC varieties. In a similar exercise, Sri Lanka has lost her control of the Egyptian tea market. Sri Lanka largely produces orthodox teas reputed for high flavour and blending. Pakistan has given its neighbours - Bangladesh and Nepal similar duty concessions for tea imports into that country. Ninety-five percent of Egypt's tea market is African controlled with duty free access through COMESA. In 2004 Indonesia supplied 10 million kilos of tea to Pakistan, Bangladesh, nine million kilos and India 3.6 million kilos, according to international tea statistics. Pakistan's tea market is largely controlled by two "Bazaars" adding a further barrier for Lanka to penetrate, Cooke said. |
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