KOLKATA: The proposed tea industry delegation to Pakistan has been postponed in view of the current state of India-Pakistan relationship. The delegation led by Tea Board Chairman, Basudeb Banerjee, was slated to leave in the third week of July. The events since the Mumbai blasts seem to have changed things. Confirming the development, Mr. Banerjee told The Hindu, "It has been decided to keep the trip in abeyance and we will take a relook towards the end of 2006".

The 15-16 member delegation had decided to visit four cities — Peshawar, Islamabad, Karachi and Lahore — and it would have been the first visit by a Tea Board Chairman since 1998.

The visit would have been a reciprocal one after Pakistan had brought a 14-member delegation, led by the Chairman of the Pakistan Tea Association in April this year. However, Mr. Banerjee was confident that India's exports to its neighbour would increase to about 20 million kg in 2006 from 11 million kg in 2005. Tapal, Pakistan's second biggest tea packer after Levers, has already confirmed increased arrivals from South India as well as Assam. Many north Indian tea majors had launched direct dialogues with Pakistani importers, it is learnt.

With a per capita consumption of 1.1 kg against India's 700 gm, Pakistan's market was serviced mostly by Kenya which sold about 90 million kg annually at prices lower than India's. The Kenyan drought last year created an opportunity for Indian exporters. South India accounted for over 90 per cent of the exports.

Industry sources said that while South Indian teas were found to be more affordable by Pakistan, North India would pitch in with better quality by developing a Pakistan blend.

Mr. Banerjee said that with a likely import of 20 million kg, Pakistan would be among India's major markets for CTC alongside Russia, the U.K. and the UAE. India has conservatively set an overall export target of 200 million kg this year against 203 million kg in 2005.

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