KOLKATA: Egypt and Pakistan are turning to Indian exporters in the wake of the drought in Kenya, raising India's hopes of a brighter export scenario in 2006. Between January and December 2005, Indian tea exports were 187.5 million kg against 197.6 million kg in 2004, according to latest statistics from the Tea Board.

However, not only Egypt and Pakistan, but also China, India's arch rival in the world tea market, has come calling, a senior official at the apex industry body, Indian Tea Association (ITA), told The Hindu.

Explaining why enquiries from Egypt were exciting ITA and tea exporters, sources said the African country sourced nearly 90 per cent of its 100 million kg annual imports from neighbouring Kenya. However, an until-recent import duty of 30 per cent on Indian teas imposed till recently by the Egyptian government had made Indian teas expensive, almost shutting out that market to Indian exporters. Recently, this rate has been revised to five per cent and industry circles feel that this and the development on the Kenyan front could become advantageous for Indian teas, especially as Egyptians drink mostly CTC tea. However exporters say that some time will be needed to work out the blends that they prefer, in case the enquiries translate into business.

In the case of Pakistan, which is a 130-million-kg market, sources said that about 65 per cent of this market was serviced by Kenya. However, in this case, India's exports to Pakistan had already started picking up following concerted efforts by the government and the industry. Indian tea exports to Pakistan increased to 9.5 million kg in 2005 from a mere 3.5 million kg in the year before.

As for the Kenyan drought which is being described as one of the worst in a decade, sources said that insufficient rains between October and December 2005 had begun to affect tea output since January.

In 2005, Kenya, now the world's largest tea exporter, exported almost its entire production of 349 million kg. This year, a crop loss of about ten per cent is being feared.

Referring to China, sources said that recently a delegation had come to India looking for black tea.

"Although 90 per cent of Chinese production is green tea, the youth in that country is showing preference for black tea and an initial demand of about 2.5 million kg is being projected," sources said.

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