NEW DELHI: India is aiming to break new ground in its tea exports with an entry into Chile where it had recently taken a delegation.
The existing preferential trade agreement with the Latin American Country is being seen as a major catalyst in this foray.
The 21 million-kg Chilean tea market is currently dominated by Argentina and Sri Lanka, with some re-traded teas also being sent from some European countries. Indian presence is virtually non- existent. “We are pretty optimistic about Chile,” Mr. Santosh Sarangi, Deputy Chairman and CEO, Tea Board India, said recently.
He said that despite the distance, the Preferential Trade Agreement which gives an 80% margin of preference to tea, will help neutralise the freight costs to Latin America, which were also on a downswing now.
“The Indian Tea Association has been pressing for a delegation to Chile since last year,” said Mr. Sujit Patro, Secretary, Indian Tea Association, who was also a member of the delegation.
It may be mentioned here that the PTA signed in March 2006 and was expanded in September.