June 19, 2003	Thursday	Rabi-us-Sani 18, 1424

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CALCUTTA, June 18: A delegation from India’s tea industry will visit Pakistan at the end of the month on hopes of winning export deals amid a thaw in tension between the two neighbours, an official said on Wednesday.

“The delegation will visit Islamabad and attend a four-day conclave on tea exports in Karachi,” Indian Tea Association chairman Bharat Bajoria told AFP here.

Mr Bajoria, who will lead the 14-member delegation on June 28, said the mission would include representatives of major names in the business, including Tata Tea, Hindustan Lever, Eveready Industries and Harrison-Malayalam.

He said Indian traders hoped to clinch deals to export 10-15 million kilograms (22-33 million pounds) more of tea to Pakistan.

“It is good news for Indian traders that Pakistan has reduced import tariff (on tea) from 25 per cent to 20 per cent,” Mr Bajoria said.

“Pakistani traders have also expressed keen interest in restoring trade links with India and July is the time when Pakistan buys tea.”

India’s Tata group has already entered into a joint venture with a Karachi-based group to set up a tea blending plant in Balochistan, he said.

Pakistan is the world’s third largest importer of tea, consuming about 150 million kilograms annually including 3.5 million imported directly from India through the state-run tea board.

India is the world’s largest tea producer with an output of 840 million kilograms each year. Exports stood last year at 180 million kilograms with Europe a key market.

However, the 1.5 billion dollar-a-year industry is desperately looking for fresh markets as it faces slump in both exports and the key domestic market.

Mr Bajoria said tea traders of India and Pakistan met two years ago with the aim of increasing trade in the two countries’ favourite beverage.

However, no deal could be struck as tensions between the two countries soared after an attack on India’s parliament in December 2001, which New Delhi said was carried out by Pakistan-backed groups battling Indian rule in Kashmir.—AFP