Calcutta, July 20: The Assam orthodox tea market is hotting up with Iranians visiting India to import the commodity after four years. Senior officials of leading Iranian tea companies, including Gulistan and Union Tea, have landed in the city to strike deals with local tea producers.

The Indian industry expects to export 10 million kg of tea to Iran in the current year.

The move has brought relief to an industry that has witnessed a surge in export volumes by 12 million kg in January-May 2004 compared with the year-ago period. There is a 35 million-kg shortfall in tea production in the same period.

“This means that there is an overall shortfall of 47 million kg in the domestic market. We feel that there will be some impact on the prices of tea following these developments. The tea industry is languishing for the last four years and prices have only gone down,” said a senior tea industry official.

The industry is also cheered at the prospect of the visit of a high-powered delegation from Pakistan on August 8 for business talks with the Indian industry. Pakistan imports CTC tea.

Iran had lifted the import ban on Indian tea in mid-April — after a gap of four years.

The Indian tea industry has welcomed the move as it is trying hard to make substantial inroads in the Wana countries to boost its falling exports. In 2003, India had exported 173 million kg of tea against a target of more than 200 million kg.

Iran consumes 110–120 million kg of tea annually. The nation produces 50-55 million kg on its own and the rest is imported from Sri Lanka and India. The country imports mainly Assam orthodox and high-quality Assam CTC tea from India.

In the 1980s, Iran used to import 15-18 million kg of tea from India. The volume dwindled to 5-6 million kg in the 90s, Indian tea industry officials said.

Iran had imposed a ban on the import of tea four years ago. Tea was, however, reaching Iran through the smuggled route.

Even though Iran has lifted the ban, it had put a duty of 80-82 cents per kg of tea. Industry officials said the producers were paying $2 more on per kg of tea through the smuggled route.

“Therefore, the duty imposed by the Iranian government is not high. Rather it suits our pockets,” said an Indian tea producer.