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IT IS TO be hoped that the forthcoming visit by an Indian Tea Association delegation to Pakistan will help create conditions under which the latter will emerge as a regular importer of Indian teas. The tea industry's fresh initiative comes at a time when the two countries are making yet another attempt to improve bilateral relations. The Indian industry greatly values the Pakistani market not only because of its size — an estimated 140 million kg — but also because strong liquoring Indian CTC teas are a big draw.. Yet, a breakthrough there has been eluding the Indian industry, which has to be content with token exports. Despite India's proximity, Pakistan meets 75 per cent of its requirements from Kenya and gets the balance from Bangladesh, Sri Lanka, Vietnam and others.

India and Pakistan had exchanged tea delegations in 1997. Then, in February 2001, an Indian Tea Association team went to that country and even signed with the Pakistan Tea Association an MoU that was to be valid up to December 2005 and which, inter alia, provided for import of 7-10 million kg in the first year and a gradual increase to 10-15 per cent of Pakistan's annual requirement. Obviously, this understanding has not endured. Significantly, on that occasion, the deliberations had veered round to the view that the mindset in the prevailing environment was preventing them from making earnest efforts to develop bilateral tea trade. And then, while the Indian side had complained about high duties imposed on its tea by Pakistan, the latter's tea trade gave vent to its feeling that India was not interested in catering to the Pakistani market because of its large home consumption and the eagerness to step up exports to Russia and CIS markets. Ideally, the two sides in their latest exercise should make the MoU of February 2001 the basis for an action programme. It augurs well that Pakistan has, of late, reduced the incidence of duty. It should now see how the Wagah border can be used to get Indian tea; for this is in its own interest as the sea route takes longer time and the availability of vessels is uncertain.

India, on its part, should address Pakistan's expectations about quality, price and regularity of supplies. These become small issues if there is a change of mindset on both sides. Perhaps, the powers-that-be in Islamabad can lend a hand to its tea trade in forging a sustainable basis for regular import of tea from India. An agreed action plan to popularise in Pakistan the beneficial health aspects of drinking tea too can bring the trade in the two countries closer. Given the preference for India's CTC tea, Pakistan, with the right mechanism in place, should not find it difficult to source from India initially at least 10 million kg. For India, it will be an important gain as exports to Iraq have, in the prevailing situation, become somewhat uncertain; the market in Egypt has been lost because of the Common Market for Eastern and Southern Africa agreement of 1994, and sales to Russia and other CIS markets remain well below expected levels.

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