Date:08/10/2004 URL: http://www.thehindubusinessline.com/2004/10/08/stories/2004100800931000.htm

Back Libya lifts ban on Indian tea imports

Pratim Ranjan Bose

Kolkata , Oct. 7

AFTER a five-year ban, Libya has opened its doors to Indian tea exporters this year. A 16-million kg market, Libya stopped importing from India allegedly in protest against the export of three million kg of `substandard teas' by a Kolkata-based merchant exporter way back in 1998-99.

According to Tea Board sources, on September 24 this year, the National Supply Corporation (Nasco), the State-run procuring agency for the Libyan Government, issued orders for 3 million kg of orthodox leaf blend tea at Euro 1.3 a kg (approximately Rs 75 per kg) to three merchant exporters firms, Tea Time, Neptune and Hindustan Udyog. All the companies are a part of the Tea Time group.

Of interest is the fact that Sri Lanka has received an order of 4.5 mkg. Till 1998, Indian exports to Libya used to hover around 6 mkg. However, the 1998-99 controversy led to the balance tilting totally in favour of Sri Lanka in the following years.

The development has once again fuelled the debate of the real content of Indian tea in Indian tea exports. Merchant exporting community sources said that the price offered for orthodox leaf blends (belonging to OP, OP-A, OP1 and other varieties) are much lower than those available in the Indian market.

"After taking into consideration the freight charges, the offer price will come down to around Rs 68 per kg. The nearest North Indian variety is priced at Rs 150 per kg. The South Indian variety, which has a smaller leaf, is priced at approximately Rs 70 a kg. Accordingly, the bulk of such exports should include imported teas from Indonesia and Vietnam which are available at a cheaper price," sources said.