Dubai's tea trade grows to record 106m kg in 2006

12 Feb 2007

Dubai: Dubai's total tea trade increased by 9.21 per cent to a record 105.5 million kg in 2006, up from 96.6 million kg the previous year, according to the Dubai Tea Trading Centre (DTTC).

During the same period, 4.3 million kg of multi-origin teas were traded through the DTTC, an initiative of the Dubai Multi Commodities Centre (DMCC) almost doubling the trade figures for the previous 10 months.

The DTTC was established in 2005 and began operations in March of that year.

The growth in the tea trade through both Dubai and the DTTC is particularly impressive when viewed in light of the severe drought Kenya suffered last year, which led to a 25 per cent increase in global tea prices.

Ahmad bin Sulayem, chief operating officer of DMCC, said, "The DTTC was conceived as a vehicle to facilitate the participation of regional tea markets in international trade, and strengthen Dubai's role as a focal point for the tea trade in the region. The increase in the number of tea-producing countries trading through the DTTC and the growing volumes of trade are proof of the success of our business model. We plan to work closely with tea producers and buyers to further grow the volume of trade through the region. "

Strengthening ties

Sanjay Sethi, head of the DTTC, said: "Worldwide, last year was a challenging one for the tea trade, primarily due to factors beyond its control.

In Dubai, however, 2006 was marked by record gains which are indicative of the emirate's growing significance on world tea trade routes."

The Middle East accounts for 27 per cent of global tea imports.

"This has positively affected the volume of tea transacted through Dubai and the DTTC," Sethi said. "In total, the DTTC has stocked and traded 6.7 million kg of tea since the inception of the centre."

In the two years since its inception, the DTTC has expanded its range to process teas from 13 producing countries, including Kenya, India, Sri Lanka, Indonesia, Malawi, Rwanda, Tanzania, Zimbabwe, Ethiopia, Vietnam, Nepal, China and Iran.

In keeping with its mandate to further increase the tea trade in and through Dubai, the DTTC facilitates sales with buyers in the GCC countries, Iran, Iraq, Jordan and CIS countries.

Sethi said: "In 2007, our focus is to further grow and strengthen our interaction with buyers in existing markets, while also increasing our coverage area to include Afghanistan, Pakistan and other select Middle East and European countries."

By Staff Reporter

Gulf News 2007. All rights reserved.