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Pakistan cuts 5% duty on Indian tea

M Chhaya in Kolkata | June 18, 2003 13:20 IST

Indian tea growers, who begin a four-day tour of Pakistan from June 28, are expressing happiness with Islamabad's decision to cut import duty on the crop by 5 per cent.

"The decision to slash import duty from 25 per cent to 20 per cent will help promote tea exports to Pakistan. It is good news, coming as it does before this trip," says Indian Tea Association chairman Bharat Bajoria.

The delegation, drawing 14 tea growers and officials from various parts of the country, will leave for Dubai enroute to Karachi in the hope of augmenting exports to Pakistan, much of whose demand for the beverage is met by Kenya.

"We will hope to clinch deals for exporting 10-15 million kg of tea during this trip," says Warren Tea's Gautam Bhalla, who will lead the delegation. The delegation members will also travel to Islamabad.

News of the trip itself has got the Pakistani tea traders buzzing with at least five of them making definite inquiries on deal possibilities during the delegation's visit.

However, this is not the first time an Indian tea team is travelling to Pakistan. A similar delegation had visited in 1997 and 2001, but nothing substantial came out of those trips.

Indian tea exports to Pakistan in 2002 stood at 3.5 million kg. Almost 55 per cent of Pakistan's requirement of 140 million kg of tea is met by imports from Kenya.

Indian tea companies now hope to make a significant dent in the African nation's hold on the Pakistani market.


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