'Tea prices can be curtailed if imports are facilitated directly from Tanzania'

KARACHI: Mian Nasser Hyatt Maggo, President FPCCI, has emphasized that tea prices can be curtailed if imports are facilitated directly from Tanzania, which is a major producer of tea in the world.

Pakistan should explore every possible avenue to control food inflation and tea is one of the major food items fueling inflation as it is dependent on imports heavily, he added.

Maggo said that it is perturbing to note that currently only two percent of tea is being imported from Tanzania directly and pricing pressure in Kenyan tea market causing an added strain to foreign exchange reserves of Pakistan and exchange range volatility is adding up to the miseries of importers and general public alike.

Hanif Lakhany, VP FPCCI, apprised the Pakistani exporters of the potential to export a number of products to Tanzania in large quantities, e.g. value added textiles, pharmaceuticals, surgical goods, sports goods, fruits and vegetables, plastic ware, etc.

Zeeshan Maqsood, Convener FPCCI's Standing Committee on Tea Trade, said that Pakistan imports a huge amount of around 240 million kilograms of tea annually and Tanzanian share is only 3.5 million kilograms. Pakistan is a $600 million tea market and Tanzania stands to benefit a lot from getting a share out of it.

Dr Jacqueline Mkindi, CEO of Tanzanian Horticulture Association, led the counterpart delegation and invited the Pakistani traders to explore the opportunities in textiles, pharmaceuticals, gem stones, minerals and fruits & vegetables.

FPCCI considers the current trade volume of approximately $220 with Tanzania too short of the real potential and considers the psychological mark of $1 billion achievable within a short span of two to three years.

Copyright Business Recorder, 2021