DMCC launches Dubai Tea Trading Centre

DTTC will be a dedicated facility in Dubai at which international tea producers and merchants can hold stocks of tea that will be readily available to meet the immediate requirements of importers in the Middle East and adjacent regions. Enabling availability of a variety of teas from multiple origins, DTTC will offer convenience to tea purchasers, whilst promoting the interests of exporters.

The planned new centre has already won the enthusiastic support of tea industry participants from three of the world's leading tea exporters - India, Sri Lanka and East Africa.

Potential DTTC members will include tea producers, exporters, regional importers and international merchants. Initially DTTC will be located at an existing warehouse facility within the Jebel Ali Free Zone (JAFZA), with plans to move to a purpose-built facility in the free zone within the first two years of operation.

Announcing the DTTC initiative, DMCC's Executive Director, Commodities, Dr. David Rutledge, said "The Middle East and adjacent regions account for approximately 25% of global tea imports and Dubai is already an important regional centre for tea value adding and transshipment. With the prospect that a number of the regional tea markets will in the future become more open to freer participation in international trade, there is an opportunity for Dubai to substantially strengthen its role as a focal point for this trade. DTTC has been conceived as a vehicle to facilitate this process."

"DMCC has initiated dialogue with producers, merchants and government agencies in the major tea producing countries of India, Sri Lanka and in East Africa and is confident that DTTC will receive support from these important centres", said Dr. Rutledge"

Tea Board of India Chairman, Mr. N.K. Das, said "The Indian tea industry has for some time been actively considering ways of enhancing its access to the growing Middle East market, and have been particularly interested in the role that Dubai might play. We applaud the DMCC for their initiative in creating the DTTC, and look forward to working with them to maximize potential for the Indian tea industry."

Mr. Jayanatha Fernando, Chairman of the Ferntea Group, a Sri Lankan tea exporter with extensive experience in the Middle East, said "The DTTC has the potential to facilitate the process of linking together exporters and regional importers. It is certainly of interest to us."

A leading East African tea agency also emphasized the importance of the Middle East as part of its future marketing strategy and that the creation of DTTC was a welcome development.

In 2003 Dubai imported 74 million kilograms of tea with an approximate market value of AED 900 million, while a further 71 million kilograms was transshipped through the Jebel Ali Port.

Last year India produced a total of 857 million kilogrammes of tea while Sri Lanka produced 303 million kilogrammes of tea.

Through the creation of DMCC's industry specific initiatives, such as the soon to be launched Dubai Commodity Receipt (DCR), coupled with the development of DTTC, the value and volume of commodities traded in and through Dubai is expected to increase significantly.

DMCC expects the Dubai Tea Trading Centre to commence operations in mid-2004, with an aim to capture some of the current season's marketing activity.