India's chances to re-enter Egyptian market brighten

By Our Staff Reporter

KOLKATA, OCT. 8. After more than two years since the formation of COMESA, a trade block of East African countries, in 1998, Indian tea has a fair chance to re-enter the Egyptian market as the latter has withdrawn the special concessional duty on Kenyan imports from September 17. Kenyan teas used to attract only three per cent duty in Egypt since 1998 as against 30 per cent payable by Indian exports.

According to a communication from the Indian Embassy in Cairo to the chairman of the Tea Board on October 4, the concessional duty was withdrawn in retaliation of ``technical and administrative obstacles" faced by Egypt in exporting to Kenya. Irrespective of the reasons behind the development, the Indian Embassy is believed to have swung into action to reap the maximum benefit out of it. Senior Embassy officials have already held meetings with the Ministry of Trade, Egypt, and overseas importers to appraise them of India's interests.

The largest exporter to Egypt in the early 1980's, India had lost its foothold there first to Sri Lanka and then to Kenya, throughout the 1980's and 1990s. Though total imports of tea by Egypt remained more or less stagnant at around 75 kg, Indian exports have declined from 17 million kg in 1985 to a mere four million kg in 1998. Kenya, in the meantime, increased its exports from eight million kg in 1985 to 39 million kg in 1998. Shipments of Sri Lanka, though higher in the initial years, came down to nine million kg in 1998.

The introduction of special concessional duty for COMESA countries in 1998 has added to India's woes. In 2000, the country exported a minuscule 8.7 lakh kg to Egypt against 59 million kg by Kenya. Sri Lanka managed to maintain its share at 10 million kg.

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Section  : Business
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