KOLKATA: The India Tea Centre, proposed to be set up in Cairo, will be on the public-private partnership (PPP) model with the Tea Board and the industry sharing the rentals. Egypt has been identified as one of the three new thrust markets for boosting India's tea exports.

Sources said that a three-member team led by Tea Board Chairman, Basudeb Banerjee, was set to visit Cairo for a week beginning March 25 to look for possible location and estimate costs. The Tea Board, under its market access initiative plan, will contribute 75 per cent of the rentals in the first year, which will gradually be tapered off to 50 per cent in the second year and 33.3 per cent in the third year. Exporters and producers are expected to pitch in with the balance.

The centre would be run by the industry and producers and exporters BOTH in the north and the south were keen on this project, sources said. Since the Centre's main aim was to register high footfalls there would be a restaurant which would also display Indian teas and perhaps allow a free cup as sample.

Another industry team was set to visit Cairo from April 23 to participate in a buyer-seller meet, sources said, adding that along with Pakistan and Iran, this Mediterranean nation was now a focus area. Tea exports to Egypt increased from 3.7 lakh tonnes in 2005 to 2.5 million kg in 2006 and this 70 million kg market had great potential. Prices too have improved from Rs. 60 to Rs. 76 a kg this year. Tea Board sources said that the Egyptian Government was buying about 15 million kg of tea mainly from Kenya. "This is where India is trying to move in".

It may be mentioned here that tea exports to Egypt suffered a jolt since 1999 after Egypt became a member of the Common Markets of Eastern and Southern Africa (COMESA) in 1998 following which a 50 per cent duty was imposed on teas from outside COMESA. This was later reduced to five per cent and now stood at two per cent, enabling India to regain its competitive edge.

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