PTPN eyes Canadian tea market

PTPN eyes Canadian tea market

Wahyoe Boediwardhana, The Jakarta Post, Nusa Dua, Bali

State-owned plantation firm PT Perkebunan Nusantara (PTPN) VIII
would like to expand its exports to Canada, where demand for the
commodity is increasing.

Firm president director Abdul Halik said on Wednesday on the
sidelines of the second International Tea Business Conference
that Indonesian tea only accounted for 6 percent of the tea
consumed in Canada.

"The Canadian tea association told me that domestic demand has
increased and that the country needs to import more tea. They
said it was an ideal opportunity for Indonesia to expand our
market there," he said.

Abdul said expanding into Canada would help Indonesia, the
fifth biggest tea exporter in the world, increase production,
which last year reached 88,176 tons, down from 100,185 tons in
2003. Some 85 percent of domestic tea production is exported to
Europe, Saudi Arabia, Iran, Jordan, Egypt, Russia and America.

Meanwhile, Minister of Agriculture Anton Apriyantono said the
government planned a thorough evaluation of all taxes on
agricultural products and their derivatives.

"We do not want to rush into a decision. I have asked
agriculture ministry officials to discuss the issue thoroughly,"
he said.

Abdul said Indonesian tea producers were at a disadvantage
compared to their compatriots from other countries because of the
high import tax imposed by other countries.

He said Pakistan placed a 30 percent export tax on Indonesian
tea, while Sri Lanka, India and Kenya only had to pay a 5 percent
export tax.