Date:14/07/2006 URL: http://www.thehindubusinessline.com/2006/07/14/stories/2006071404800800.htm

Back UK firm wants orthodox tea output raised

Our Bureau

Offers to help Tea Board with promotional activities in Russia

If there is a proper supply of orthodox tea, Ahmad Tea Ltd could buy 1.-1.5 million kg of the variety annually.

Kolkata , July 13

The UK-based Ahmad Tea Ltd has urged the Indian producers to manufacture more of orthodox tea and advised Indian Tea Board to be more focused on its promotional activities.

According to Mr Rahim Afshar, Managing Director of Ahmad Tea, there should be some sort of stability in the prices of orthodox teas. Mr Afshar, who is based in London, recently held a series of meetings with the producers and the Tea Board. Talking to reporters on Thursday, he said, Ahmad Tea was currently buying around three million kg of CTC teas. If there was a proper supply of orthodox tea, the company may buy approximately 1-1.5 million kg of orthodox teas from auction centres.

Ahmad Tea is the second largest tea seller in the Russian market and in Moscow, Mr Afshar claimed, it was the market leader. Apart from Russia and the CIS countries, the company has significant presence in Japan and the US. Annually the company sells 20 million kg of teas.

In India, the company has long-term tea buying arrangements with leading producers such as Williamson Tea, Goodricke and Assam Tea Co. He tried to rectify the common perception that Russia is a low-cost CTC market. "It is not true. We are selling premium orthodox tea in that country for several years. If there is a consistency in the supply of good quality of orthodox teas, then we would be try to promote Indian orthodox teas in the Russian market," he said.

In his dialogue with Mr Basudeb Banerjee, Tea Board Chairman, he urged that instead of promoting Indian tea, the board should be more specific and try to promote either Assam tea or Darjeeling tea or Nilgiri tea or Dooars tea. Ahmad Tea is also willing to help the Tea Board with its promotional activities in Russia. "We have enormous amount of expertise and we may help the Tea Board," he said.