After a brief increase in 2011, the export of Indian tea to Pakistan has decreased in 2012. Despite a higher price, the Kenyan crop gathered a larger market share in Pakistan last year.
Although Pakistan Tea Association (PTA) members were hopeful of importing 30 million kg of tea from India in 2012, exports actually declined by 10.4% from the 2011 level.
According to data available with the PTA, India exported 20.6 million kg tea to Pakistan during January-December 2012 against 23 million kg in 2011. The market share of Indian tea in Pakistan has also come down to 16.01% last year from 19.54% in 2011. Export of Indian tea to Pakistan picked up in 2011 to 23 million kg from 19 million kg in 2010. India for long had been looking at increasing its market share in Pakistan and exports increased from 5.4 million kgs in 2007 to 16 million kg in 2008. Earlier last year, a PTA delegation expressed hope about importing around 30 million kg in 2012.
Responding to an email from FE, PTA chairman Mohd Hanif Janoo said, ?Our packers have raised prices. They are giving better cups to consumer so we have to buy better quality Kenyan (tea).?
Meanwhile, Kenyan crop has increased its market share in Pakistan from 52.33% in 2011 to 53.55% in 2012. According to PTA estimates, export of Kenyan tea to Pakistan increased from 6.4 million kg in 2011 to 6.9 million kg in 2012. On the other hand, the average import price of Kenyan tea has increased to $3.37 in 2012 from $3.18 in 2011.
South Indian tea has already been facing competition from the Vietnamese crop in the Pakistani market. While the north Indian variety sells at an average of $3 or more per kg, south Indian tea sells at an average of $1.35. Vietnam?s tea was priced marginally lower at $1.27 in 2012.