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2nd tea convention opens

Govt plans to enter

global tea market,

says EPB chief

RECORDER REPORT

KARACHI: The Minister of State and Chairman of Export Promotion Bureau, Tariq Ikram, has said that borders would be tightened to check the pilferages made through smuggling and the government intends to broaden its export base, by promoting tea business.

At a three-day 2nd Tea Convention on Monday, the EPB chairman said that there had been vast potential in Pakistan to recoup itself from the present economic problems. Ikram said that the government plans to enter the global tea market. The commerce ministry would like to establish Tea Auction Centre and Cotton Exchange Market in Karachi to get more access to international markets.

The EPB along with the business community is trying hard to meet the challenges faced by developing countries like Pakistan.

He added that the tea import bill cost Pakistan nearly $250 million per annum. He urged the exporters, who came from Kenya, Bangladesh, Indonesia, India, Sri Lanka, etc., that Pakistan was willing to get into the export market and needed small share in the tea industry.

Ikram said that Pakistan had recorded a GDP growth of five to six percent but compared with the region it was still low. The location of the country was quite strategic and could tap the central Asian markets. "Even it could meet the demand of the neighbouring countries if tea auction centre is set up in the country. Pakistan could hold exhibition of their products not only at home but in Dubai also.

"The rise in exports can help Pakistan could cut its trade deficit, beside it will help save foreign exchange through import substitution", he added.

Aftab Tapal said that the tea consumption in Pakistan was around 135 million kgs and exporters belonging to several countries should help instal packaging and manufacturing units in the country.

He added that Lever Brothers and the government of NWFP through joint venture had started producing tea in Shankiari. However, expertise were required to increase tea cultivation in the country. The country has ample land to produce tea besides the weather in the NWFP is also favourable.

Aftab Tapal claimed that the areas in major tea growing countries were reaching their saturation point. Elaborating, he said though India was exporting tea but the population boom in that country would force her to import tea in coming years. Moreover, land for tea had been squeezed and mega tea companies would soon be in search of tea growing lands.

Mohammad Hanif Janoo, chairman, Pakistan Tea Association, said that to boost our exports tea could play a pivotal role. The country should move towards value addition. He appreciated the efforts of Lever Brothers and the government of NWFP for developing new tea varieties in Shinkiari. An institute has also been established to disseminate technical know-how and latest information to the local farmers.

He said that UK was the largest consumer of tea and its import at present was around 176 million kg per annum. The import value worked out to be two or three dollars per kg but through value addition, packing and brand name, it was earning about 6 to 7 dollars per kg.

Janoo informed the participants comprising 130 foreign delegates and 150 local businessmen from the tea industry that Pakistan do not want a large share in tea export but like to enter the international market.