Pakistan Tea Association has assured the Indian tea producers and exporters that its members would import a minimum of 10 million kg of tea from India in 2003-04, subject to conditions. This would mean an increase of 170 per cent over current exports to Pakistan.

The agreement was part of the memorandum of understanding signed between Pakistan Tea Association and the Indian Tea Association on facilitating tea trade between the two countries.

The agreement however, comes with a rider. PTA members would support a minimum of 10 million kg, provided the quality and prices were competitive.

The purpose of the visit was aimed at increasing the sale of tea to Pakistan, which was at 3.7 million kg.

Industry sources said, Pakistan was an important market for India, being the third largest consumer of tea in the world and having the highest per capita consumption.

Pakistan consumed around 150 million kg of tea last year. The size of its domestic tea crop was negligible.

During discussion between the members of the two associations, it has been agreed that ITA would take appropriate steps to render assistance to producers in India to facilitate tea export to Pakistan.

The PTA would also take similar steps to provide assistance to the tea trade in Pakistan towards facilitation of imports of tea from India.

ITA, in its turn, would ensure that its members supply suitable quality of tea at internationally competitive prices.

PTA and ITA would exchange relevant information in terms of production, exports, imports and prices of tea and both the associations would facilitate regular visits of buyers and sellers between the two countries.

It may be mentioned, that the last delegation to Pakistan was in February 2001, when the two associations had signed a MoU and agreed to support 10 million kg. However, soon after the Kargil issue cropped up, the agreement never materialised.

The opening of Pakistan was imperative for India, at this juncture. The situation in Iraq, which was a significant market for India, having picked up 40 million kg last year, was still uncertain.

This meant an additional 40 million kg for the domestic market. To add to this problem, the Indian crop was already up by around 30 million kg at the end of April.

If alternative market for exports were not identified, then it would put a pressure on tea prices.