Prospects for the Pakistan Tea Industry

I. D. Carruthers, G. D. Gwyer


Pakistan's foreign-exchange earnings from tea, which during
the period 1951-53 averaged more than 40 million rupees annually, had
fallen to an average of 6 million rupees annually during the period
1964-66. This decline in earnings resulted from the diversion of tea
from export to domestic markets where higher prices reflected the extent
to which the growth of domestic tea consumption had exceeded the growth
of production. Recognising that continuation of this trend would lead to
Pakistan becoming a net importer of tea with further loss of foreign
exchange, the government took steps in the early sixties to en¬courage
expansion of tea production as an alternative to restraining demand
through rationing or eventual import controls. In this paper our primary
concern is to establish, through analysis and forecast of market forces,
the like¬lihood of Pakistan being able to maintain its self-sufficiency
position in tea production up to 1975 without recourse to market
controls, and to suggest policy measures that will help in achieving
this objective in the longer term. An ancillary purpose is to recommend
technical and economic changes that will improve the efficiency of tea

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