KARACHI: Pakistan is likely to face tea crisis just ahead of Ramadan as the price of black tea has surged to Rs1,600 per kg from Rs1,100 in the last 15 days due to over 250 containers still stuck at the port.
Only importers who received a 180-day deferred payment telex from their suppliers were permitted to pay duties after January 21 due to banks’ filing of financial instruments. However, those who were unable to obtain this facility from their suppliers still have containers stranded at the port.
In the retail, a leading brand has raised the price of 170-gram Danedar and Elaichi packs to Rs320 and Rs350 from Rs290. The 900 and 420-gram packs now cost Rs1,480 and Rs720 as against Rs1,350 and Rs550. Other packers are set to follow suit.
The issue in imports, according to Zeeshan Maqsood, Convener Standing Committee of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tea, could cause severe shortages in March.
He said that banks claim that the State Bank of Pakistan (SBP) has given them the go-ahead to produce paperwork pertaining to 180-day deferred contracts or 180-day letters of credit (LCs).
The country’s official tea imports in IHFH23 stood at 128,057 tons ($318m) versus 129,693 tons ($300m) in the same period last year. The average per ton price in IHFY23 stood at $2,489 as compared to $2,317, official data showed.
