Tea exports from India might go up this fiscal because of increased demand from Iraq, Iran and to some extent from neighbouring Pakistan, minister of state for commerce Jairam Ramesh said Monday.
Tea exports to Iraq, one of the main markets for Indian tea has slowed down in the last few years. Iraq, which consumes more than 45 million kilogram of orthodox tea and brokens mainly, purchased around 42 million kg of tea from India two years ago, but now it has shrunk to just around 2 million kgs last year.
?This year, according to the preliminary estimates, we could reach to near 12-15 mkg,? Jairam Ramesh said while addressing the 115th annual general meeting of Calcutta Tea Traders Association here. Brushing aside allegations of delayed payment from Iraq, Ramesh said,?The real problem in Iraq was, Indian exporters actually exported lesser amount than contracted. There were also people who contracted to export tea but exported something else actually. The companies that have defaulted are public sector companies and big exporters from Kolkata.?
On Egypt, Ramesh said the country where the tea market is dominated by large importers like El Nasr, is also emerging as a major export destination for Indian tea.
According to him, Pakistan, another major export market has been an inconsistent player. ?Whenever Kenyan exports are down our market share goes up in Pakistan. We have still not succeeded in institutionalising a high market share in Pakistan,? he said. Pakistan imported 160 million kg of tea through the legal route in 2006-07. ?We are targeting a share of around 25-30 million kg tea exports to Pakistan this year by stepping up our marketing effort,? Ramesh added. He added that Iran is the fourth largest target market for Indian tea exports. ?It has been an under performing market,? Ramesh said, adding that the country is planning to increase exports to around 13 million to 15 million kg per year from the current 7-8 million kg.