While the bonhomie between Narendra Modi and Pakistan Prime Minister Nawaz Sharif continues, Indian tea faces stiff competition from Kenya in Pakistan.
The bordering nation is buying more tea from Kenya in the current season and going by this vogue, it will be difficult for India to achieve 50 million kg of tea exports to Pakistan by 2015.
Price is the key factor for Pakistan for not buying first flush teas from India.
Current year, Kenyan production has been on the higher side and the African nation has off-loaded tea in the Pakistan market at a much cheaper price.
Indian Tea Association Chairman, AN Singh, said that Kenya has sold teas to Pakistan at a price of $2 per kg. “In some cases, Kenya has offloaded tea at the sub $2 level. On the contrary, our tea is at a higher price. There is a price differential and Pakistan cannot afford to buy tea at a higher price.”