local packets more competitive.Only 6-7 per cent consumption is in tea bags, though, it might be noted that this segment is growing very fast.
It might be pointed out here that in Russia a differential tax structure pre-vails five per cent on bulk tea and 20 per cent on packed tea. That makes packed tea imports uncompetitive and legislation is not likely to change.
Additional duties are imposed in the forms of VAT (20%), sales tax (5%) and special tax (1.5% of CIF value).
Consistent response from all importers during the meetings points to the urgent need to upgrade quality since the Russian market has graduated to Orthodox. The Russian consumers are still origin-sensitive and, therefore, India would have to undo the damage caused in the mid-90s by supplying cheap and poor quality teas to Russia.
Sapsan (Vostochny-Kupets) said it is not averse to switching product con-tent to suit markets. For now, it wants quick-brewing Orthodox fanning for tea bags. To ink a trade relation with Sapsan, Indian exporters must send samples and offers through e-mails. The company imports about 350 MT per month.
Zolotoy Slon (Golden Elephant) Company evinced interest in the 'Logo Scheme' introduced by the Tea Board of India for packing in Russia and also for a joint sales promotion campaign with the Tea Board where 'Lady Picker' could piggyback with the 'Baloveni' brand.
Zolotoy Slon, which has a sales volume of 100-120 MT per month, is also keen on forging a joint venture with an Indian company.
ITA Chairman Mr. Dhanuka and Zolotoy Slon General Director Mr. V.N. Gunyashev also signed a Memorandum of Understanding envisaging the areas of co-operation and action between producer-exporters of ITA and his company. The MoU stated that ITA and Golden Elephant Company would facilitate flow of information towards the objective of establishing a joint venture between the latter and ITA member companies. ITA pledged

to provide specific information of possible JV partners among its member companies to work with Golden Elephant Company. The JV partnership agreed to work on the broad objective of promoting and increasing the volume of trade between Indian tea producing companies and the Golden Elephant Company.
The MoU initially envisages supply of tea from ITA member companies to Golden Elephant Company, subject to approval of samples and prices. The JV partners could, thereafter, assess mutual business interests and relation-ships and work on the details of a possible promotion and marketing framework.
Orimi Trade, the largest tea company in Russia, felt the visit is very well-timed because it is looking forward to sign long-term deals with Indian companies. Sri Lanka currently enjoys the status of being Orimi's preferred choice for imports because "purchasing power of the Russian buyer is growing and Sri Lanka represents quality aspirations". However, the com-pany said import volumes of Indian tea, specially the north Indian varie-ties, could grow significantly.
The ITA team was invited to a tasting session, exposing Orimi's range of India-sourced brews. The team's samples were handed over for reactions. The ITA team was confident that they could match Orimi's expectations and supply appropriate teas according to specific quality grades.
May Tea Company, which has an annual import requirement of 24,000 MT, started initially with Sri Lankan teas but later shifted to Indian Best Assams and CTC Brokens. However, with the 1998 Russian economic cri-sis finally over, May Tea too feels premium varieties from Sri Lanka is what the market demands.
Tea World Company, which has a total annual import volume of 5,000 MT, is planning a visit to India in a few months to forge trade tie-ups. The company feels North Indian teas are as good as the Sri Lankan brews.