NEW DELHI
Troubled by dwindling exports elsewhere, the tea industry is eyeing
the Afghanistan market hoping trade with the war-ravaged country will
bail it out when the scenario is bleak in other countries.
"Afghanistan
as a market bears significant potential and the country's overall
tea imports had peaked to 48 million kg in 1996. Industry will consider
various initiatives required to be taken for resuming tea trade with
them," Indian Tea Association chairman Bharat Bajoria said.
The
government must devise effective mechanism for regular tea trade with
the Afghans which will then enable the industry to cater to their
needs to the fullest, former Indian Tea Association chairman R S Jhawar
added.
Bajoria
points out that in the past India has had significant tea trade with
Afghanistan which, with the establishment of the new government there,
can be revived.
The
trade, in fact, had not stopped altogether even under Taliban regime,
he said, adding however that tea exports to Afghanistan had come down
from 0.8 million kg in 1996 to 0.26 million kg in 2000 and 0.13 million
kg in Jan-August 2001 compared to 0.12 million kg in the year earlier
period.
Indian
tea exports to Commonwealth of Independent States excluding Russia
have come down considerably to 95 million kg in 2000 compared to 102
million kg in 1999 while there has been little commensurate increase
in exports elsewhere.
Bajoria
expects exports in the current season to come down to a low of 180-185
million kg against an earlier target of 215 million kg.
Any
variety of tea, whether crush, tear and curl or orthodox, can be supplied
to them depending on their affordability. At present, India's average
export price to Afghanistan is a high Rs 110 per kg though lower than
Rs 121 per kg in 2000.
It
will also be crucial what agri-food and beverages aid government decides
to give to the Afghans and how the business transactions between the
two countries are facilitated.
At
present, in the absence of financial institutions in Afghanistan,
most of the transactions are taking place in cash or barter.
Tea
industry feels apart from a $100 million Indian line of credit opened
for reconstruction of Afghanistan there is also scope of exporting
food and agri items through the government including tea.
India has pledged an aid of one million tonne wheat to Afghanistan
through the United Nations and sugar millers are also looking at export
prospects.
Jhawar
said government efforts including longer credit facilities are required
not only for accelerating exports to Afghanistan but also to other
countries like Iran and Iraq.
This
is a crucial option to make up for the lost market in the Russian
Federation where exports in April-August period has declined to 46.71
million kg in January-August 2001 from 58.72 million kg in the same
period in 2000.
PTI
