Sri Lankan Tea Market in Pakistan
Sri Lankan Tea Market in Pakistan
OPPORTUNITIES FOR
SRI LANKAN TEA IN PAKISTAN
Prepared by:
Consulate General of Sri Lanka, Karachi
Pakistan
December, 2016
1
2
CONTENTS
1. SUMMARY 03
2. MARKET ANALYSIS 03
4. ACTIVITIES OF COMPETITION 08
6. ANNEXURE 10
Tea consumption has a long tradition in Pakistan culture and it is one of the popular
beverages. People of all demographic groups across all the regions of the country regularly
consume tea. Tea consumption of about 1 kg per capita in Pakistan is one of the highest in
the world and continuously increasing due to the increase in demand. Pakistan is one of the
largest tea importing nations in the world. Out of the annual estimated tea consumption of
220,000 - 235,000 tons, around 150,000 tons are channeled legally and the rest finds its way
through informal channels. Total tea imports in 2015-16 rose to 180,790 MT as compared
with 150,538 MT in 2014-2015. Blended tea production increased to 138,422 MT in 2015-16
from 117,270 MT in 2014-15.
During 1970s and early 1980s Sri Lanka was the market leader of tea in Pakistan. The market
share declined with the escalation of auction prices in Colombo with the increased cost of
production. As a result Pakistan importers moved to lower priced CTC teas from Kenya. In
1975 nearly 67 % of Pakistan tea imports were from Sri Lanka. By 1998 the share declined to
7 % and to 2.6 % by 2003. The decline was a result of Kenyan tea gradually making in-roads
to the Pakistan market. The sudden increase of Kenyan tea imports was also a result of an
aggressive marketing campaign to change the preferences of Pakistan consumers from
traditional teas to CTC teas. Under the Pakistan Sri Lanka free Trade Agreement -PSFTA,
10,000 MT of tea per year is allowed duty free to Pakistan whereas 10% custom duty is
applicable for teas from other countries. In order to capture the lost market share using the
new opportunity under the FTA, Sri Lanka needs to engage in an aggressive promotional
campaign to promote Ceylon Tea in Pakistan.
2. MARKET ANALYSIS
e. Buyer Preferences
Pakistan tea importers are generally not concerned with the requirements of Fair Trade
practices and Sustainable Production process certification etc.
g. Import Tariffs/NTBs
The Quota of 10,000 MT granted by Pakistan for export of tea at zero duty under Pakistan-
Sri Lanka Free Trade Agreement PSFTA was expected to help Sri Lanka to increase its market
share in Pakistan. Although tea exports from Sri Lanka to Pakistan have shown some
improvement, tea quota utilization by Sri Lankan exporters remain at a very low level.
Pakistan importers face difficulties/delays in obtaining quarantine certificates from the
relevant authorities. IN addition to Zero duty facility under PSFTA under the South Asian
Preferential Trade Agreement (SAPTA) too, duty free facility is available for tea exporting
countries like Sri Lanka, Bangladesh and Nepal.
b. Analysis of Reasons Behind the Failure to Penetrate the Market in comparison with
Competitors
Sri Lanka was the leading supplier of tea to Pakistan until 1984 but lost the market share
over years . Pakistan tea market is dominated at present by Kenya due to the popularity of
4. ACTIVITIES OF COMPETITION
The table below illustrates the major tea supplying countries to Pakistan:
East African countries such as Kenya, Rwanda, Tanzania, and Uganda enjoy a competitive
advantage over Sri Lankan tea. These countries export tea by the name of Original Gardens.
They also produce sufficient quantity of CTC teas to export to the huge Pakistan market
throughout the year at competitive prices.
a. Market Progress
Pakistan is one of the largest tea consuming countries in the world. The consumption of Tea
in Pakistan is about 1Kg per capita. This is continuously increasing due to the increase in
demand. Total tea imports to Pakistan increased by 17% from 129,238 MT in 2012 to
150,180 MT in 2015. Tea industry of Pakistan is now at a mature stage. Large players have
established their brands in the market and enjoy huge profit margins. They are now looking
towards product differentiation and multi segmentation because consumers are now more
taste conscious and look out for variety in the tea market. In addition to the organized tea
market, unorganized market captures a good share in Pakistan. Tea is mainly smuggled from
different neighboring countries of Pakistan to the unorganized market. Sri Lankan tea
exporters however should focus on the organized tea market where different companies like
Tapal and Unilever are holding major market shares.
M/S. Bantvawala
Mr.5/136,Thanai Lane
Corporation Tea Mr. M. Hussain H.
23 Virjee Street bpl@cyber.net.pk
Certificate No. Importer Essa Hussain
Jodia Bazar
307511
M/S. Bantvawala
Mr.5/136,Thanai Lane
(Pvt) Ltd Tea
24 Virjee Street bpl@cyber.net.pk Mr. Haji Abdulrazak
Certificate No. Importer
Jodia Bazar Karachi.
307512
M/S. Beximco
Trading 35, Press Center
Tea
25 Company (Pvt) Ltd Shahrah-E-Kamal beximco@cyber.net.pk Mr. Jalal Aslam Ali
Importer
Certificate No. Attaturk, Karachi.
307513
M/S. Biz Impex Suite # 215,Panorama
Tea
26 Certificate No. Centre Fatima rap_sitaratea@hotmail.com Mr. Shakeel Jan
Importer
307514 Jinnah Road Karachi.
M/S. Central Impex Shop No.8, Soomar
Tea
27 Certificate No. Centreali Akber Street rap_sitaratea@hotmail.com Mr. Riaz Ahmed Paracha
Importer
307515 Jodia Bazar, Karachi.
M/S. Crescent
Shop No. 11, Soomar
Impex Tea Mr. Mohammad
28 Centre Ali Akber Street rap_sitaratea@hotmail.com
Certificate No. Importer Usman Paracha
Jodia Bazar, Karachi.
307516
M/S. East West Flate 1/2,Mr 1/34,1st
Traders Tea Floor Haribai Paragjee
29 aamir68@gmail.com Mr. Aamir Saeed Khawaja
Certificate No. Importer Building Rahbharti St.
307517 Jodia B. Khi.
M/S. Emad Tea Suite No.203, 2nd Flr,
Trading Tea Sttar Chmaber msp1@cyber.net.pk
30 Mr. M. Shoaib Paracha
Certificate No. Importer M.Feroz Street, Jodia teamarketers@gmail.com
307518 Bazar Karachi
M/S. Farooq
Trading House No. 2, New
Tea
31 Company Sarwar Gunj, Soneri fbtraders@hotmail.com Mr. Farooq Ahmed
Importer
Certificate No. Masjid Road Peshawar
307519
M/S. Fayyaz
Ahmed Shop No. 17,
Tea Merchant Tea Mohammad Plaza,
32 siddeek@cyber.net.pk Mr. Fayyaz Ahmed
Certificate No. Importer Naz Cenima
307520 Road Peshawar.
56 M/S. M. M. Tea 31, West Wharf Road ispahani@cyber.net.pk Mr. Mirza Kareem Ispahani
M/S. M. Qasim
Mr 5/99, 1st Floor,
Habibullah
Tea Thanai Thanai Lane, Mr. Mohammad Qasim
57 Brothers qasim112233@gmail.com
Importer Near Adam Masjid, Jodia Paracha
Certificate No.
Bazar,Karachi.
307541
M/S. Mohammad
Salim Mr. 5/80/81, Thanai
Tea ktc@cyber.net.pk
58 Mohammad Siddiq Lane Jodia Mr. Mohammad Salim
Importer salwwmktc@gmail.com
Certificate No. Bazar, Karachi.
307542
M/S.Salim Traders N.P.12/105, G.Floor
Tea
59 Certificate No. Daryana St, amppk@cyber.net.pk Mrs. Saima Jawaid
Importer
307543 Jodia Bazar Karachi
M/S. Mohammad
Younus
Sultan Mohammad Tea Chowk Yadgar, Mr. M. Younus Sultan M.
60 savuli@hotmail.com
Savul Importer Peshawar. Savul
Certificate No.
307544
M/S. Maryam 4/37, Abid
Enterprises Tea Chambers,Shahrah-E-
61 ahmed.jamshed21@gmail.com Mr. Ejaz Ahmed Jamshed
Certificate No. Importer Liaquat,
307545 New Chali, Karachi.
M/S. Milan Foods
Tea Ws-21, Block-14, Federal
62 Certificate No. milanfoods@yahoo.com Mr. Obaid-Ur-Rehman
Importer B. Area, Karachi.
307546
M/S. Mohammad
Mr 4/53, Hanif Manzil,
Ebrahim Paracha Tea
63 Virjee Street, unitradeimp@gmail.com Mr. Khurram Salim
Certificate No. Importer
Jodia Bazar Karachi..
307547
M/S. Moinuddin
Mr. 5/148, Shop No. 01
Paracha Tea
64 Thanai Lane, moinuddin-p@cyber.net.pk Mr. Moinuddin Paracha
Certificate No. Importer
Jodia Bazar Karachi..
307548
M/S. Mubarik Sons
Tea Katra Neel, Chowk
65 Certificate No. saeedahmedkhawaja@gmail.com Mr. Saeed Ahmed Khawaja
Importer Yadgar Peshawar
307549
M/S. Mubasher
Hassan
Importer & Tea Katra Neel, Chowk
66 hmhp@cyber.net.pk Mr. Mubasher Hassan
Exporter Importer Yadgar Peshawar
Certificate No.
307550
M/S. Mujtaba
4/12, Maimoona Manzil
Traders Tea mujtaba_safari@hotmail.com
67 Ali Akber Street, Mr. Mujtaba Kassam
Certificate No. Importer mujtabakassim@yahoo.com
Jodiabazar, Karachi.
307551
Mr.5/55,Thanai Lane
M/S. Noble Traders
Tea P.O. Box 6961, Jodia
71 Certificate No. traders@noble.com.pk Mr. Abdul Qayyum
Importer Bazar
307555
Karachi
M/S. Noor Tea
F-24, Near Sui Souther
Company Tea
72 Plot # F-24, S.I.T.E Gas noor_tea76@yahoo.com Mr. Mohammad Farooq
Certificate No. Importer
Company Karachi
307556
497/5, Mohammad
M/S. Orient Traders
Tea Feroze orientrade@cyber.net.pk
73 Certificate No. Mr. Ghulam Rasool
Importer Street, Jodia Bazar orientrade497.5@gmail.com
307514
Karachi.
M/S. Oriental Mr 7/32 1st Floor M.
Traders Tea Feroz
74 orientaltraders445@live.com Mr. Abdul Haseeb
Certificate No Importer Street Jodia Bazar
184610 Karachi
Mr-5/24, Shop No. 5
M/S. Pervez
Madina Tea Company ,
Traders Tea
75 Grey Square, Ali Akbar perveztraders@hotmail.com Mr. Pervez A. Sattar
Certificate No. Importer
Street
307558
Jodia Bazar, Karachi.
M/S. Premier
International Mr-5-80-81 Thanai Lane
Tea
76 Certificate No. Jodia nicetea@cyber.net.pk Mr. Mohammad Naeem
Importer
307559 Bazar Karachi
M/S. Usmania
Shop No. 5, Mr 5/53-54
Traders Tea
106 Ali Akber Street usmaniatraders@gmail.com Mr. Mohammad Afzal
Certificate No. Importer
Jodia Bazar, Karachi.
307587
Np-12/105, Ismail
M/S. Yakin Co
Tea Manzil, Ground
107 Certificate No. abantva@hotmail.com Mr. Asif Amanullah
Importer Floor, Duryana Street
307588
Jodia Bazar Karachi.
M/S. Younus Plot No. 361/1, Flat No.
Traders 110
Tea
108 Company Shahani Street, Ali younuslobania@yahoo.com Mr. Mohammad Younus
Importer
Certificate No. Garden
307595 East, Karachi.
Mr 5/25-28 1st Floor
M/S. Zahid Habib &
Bilwani
Co Tea Mr. Zahid Habib
109 Trade Centre Ali Akbar hpco@cyber.net.pk
Certificate No. Importer Paracha
Street Jodia Bazar
307589
Karachi
M/S. Zahid Samad Mr. 6/40, Mohammad
& Co Tea Feroze Mr. Shahid Samad
110 assons@cyber.net.pk
Certificate No. Importer Street, Jodia Bazar Paracha
307592 Karachi.
M/S. Zia Trading Co
Shop No. 4/1 Ali Akber
Company Tea
111 Street, Jodia Bazar Mr. Mohammad Salim
Certificate No. Importer
Karachi.
307590
M/S. Ziauddin Yousuf Manzil, 1st Floor
Paracha Tea Mohammad Feroze
112 zeeshan@gmail.com Mr. Ziauddin Paracha
Certificate No. Importer Street
307591 Jodia Bazar Karachi.
M/S. Al-Khursheed
Mr- 5/75, Thanai Lane,
Traders Tea Mr. Iqbal Habib
113 Jodia ihparacha@gmail.com
Certificate No. Importer Paracha
Bazar, Karachi.
101903
Off No. 30, 2nd Floor, Al
M/S. Mc Adam Hafiz
International Tea Centre, Mr- 4/67, Mr. Muhammad
114 info@mcadam.com.pk
Certificate No. Importer Oppsite.Acchi Shahbaz Bhatti
101904 Qabar, Jodia Bazar,
Karachi.
M/S. Aqtra Tea Flat No. 711, Chapal Mr. Muhammad Saad
115 info@aqtra.co
Certificate No. Importer Plaza Paracha
Prepared by:
Consulate General of Sri Lanka, Karachi – Pakistan
Disclaimer:
The Consulate General of Sri Lanka, Karachi – Pakistan, has taken every care in the preparation of
the content of this report, but the Consulate General of Sri Lanka, Karachi – Pakistan cannot be held
responsible for any errors, defects, lost profits, or other consequential damages arising from the use
of any information obtained either directly or indirectly from this report. The Consulate General of
Sri Lanka, Karachi – Pakistan accepts no liability whatsoever.