The Pakistan Tea Association (PTA) is concerned about the number of tea containers that are still pending clearance at ports.
What you need to know:
PTA Chairman Aman Paracha reportedly issued a warning that tea would soon become a rare commodity in Pakistan. The reason behind this are letters of credit (LCs) that are not being opened soon. He also stressed on the importance of tea in people’s daily life. It’s an everyday staple enjoyed by majority of Pakistanis. He stated that only one month’s worth of tea is left in 250 stranded containers due to the current problem at the port.
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The State Bank of Pakistan (SBP) has been encouraged by Paracha to allow the opening of LCs for tea in order to stop tea from becoming a rare commodity. He further stressed how supply chain disruption could have catastrophic repercussions. If immediate action is not done, there might be a significant increase in its price in the upcoming days, he cautioned.
Why it matters:
Paracha also noted that the country’s demand for tea is estimated to be 250 million kilogrammes. The recent devaluation of the PKR has already affected prices. This has pushed up the average price by around Rs. 110 per kilogramme.
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