BANGALORE, Sept 19: India, the world's biggest producer and consumer of tea, hopes to boost tea exports by targeting newer markets like Pakistan, Egypt and Iran, a top industry official said on Tuesday.

India's tea industry, whose traditional markets include Russia and the United Arab Emirates, faces a tough challenge from Sri Lankan and Kenyan producers.

But exports in 2006 have picked up, after dropping in the first quarter due to bad weather and lower output.

“This year onwards, I am quite bullish about exports,” Basudeb Banerjee, chairman of India's state-run Tea Board, told Reuters. “Our strategy now is to look for new markets and expand our domestic market.” Exports during January to July are estimated at 98.1 million kg, up from 95.7 million kg in the same period last year, the United Planters' Association of Southern India (UPASI) said in a report.India, which exports about 200 million kg of black tea and 3 to 4 million kg of green tea to 65 countries, wants to push sales higher.

“We see a huge opportunity in Egypt. They import around 24 million kg a year. We have had talks with the government agencies over the last week,” Banerjee said.

“They have promised that from April next year they will import Indian tea through government contracts.” He said exports to Iran were also likely to see a significant jump following lifting of a ban on imports of all teas in that country.—Reuters