UAE route for tea exports

Calcutta, March 28: India is lobbying the United Arab Emirates to ramp up the latter’s tea export to the West Asian countries. The UAE, which is India’s second-largest tea export market after Russia, is the world’s top re-exporter.

“There are countries where direct export is not possible because of regulatory issues and geographical disadvantages. They buy tea from Dubai. This is the reason why India considers West Asia as a key market for export,” an industry expert said. Almost the entire demand of West Asia from India is routed via the UAE.

The UAE plays a key role in international trade because of its location and ability to provide competitive logistic and storage services through the Dubai Tea Trading Centre (DTTC) in Jebel Ali Free Zone, one the most important global tea re-export hubs. The DTTC imports from 35 Asian and African countries.

According to the UAE’s foreign trade ministry, re-exports at $112 million in 2008 account for 72 per cent of the global figure. India exported 24.80 million kg in 2008 and 20.04 million kg in 2009 to the UAE. Early this month, the Tea Board of India had sent a delegation to the Third Global Dubai Tea Forum, to explore opportunities in Iran, Russia, Pakistan, the US and Canada.

Source: The Telegraph