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Libya lifts ban on Indian tea
Friday, 11 October 2002, 19:30 IST
NEW DELHI: In a major breakthrough, Libya Friday agreed to lift its ban on import of Indian tea.
India along with Sri Lanka was a major supplier of tea to Libya before the ban a couple of years ago following supply of allegedly substandard quality tea by a Kolkata based trading company.
Libya is the world's second largest consumer of tea after Ireland.
The ban on Indian tea imposed by Libya as well as Iran had been severely affecting the exports particularly with countries like Sri Lanka and China posing a challenge, said commerce ministry officials.
The world's largest tea producer, India last year exported 189 million kg of tea compared to 175 million kg in 2000, with 18 countries in the Middle East and North Africa contributing significantly to the growth.
"With the Libyan National Supply Company (Nasco) willing to register more Indian companies exporting commodities including tea, the trade is expected to receive a big boost," said a senior commerce ministry official.
The breakthrough leading to the lifting of the tea ban came during an Indo-Libyan Joint Commission meeting here held after seven years.
The two-day meeting got extended by a day to iron out hurdles hindering the bilateral trade and investment, the official said at the conclusion of the meet.
The bilateral trade between India and Libya during 2001-02 was worth $20 million.
"Though it is currently growing at 40 percent, the trade volume is below potential," said Saad Mustafa Mujber, assistant secretary for cooperation affairs and leader of the Indo-Libyan Joint Commission.
Both the countries have reached a consensus on a Bilateral Investment Promotion and Protection Agreement (BIPA), which was signed by Mujber and the Minister of State for Commerce Raman Singh.
"This agreement will help to facilitate joint ventures and promote and protect the interests of investors from both sides," Singh said.
Libya has invited Indian companies to participate in power projects.
In the oil and gas sector, Libya has agreed to expedite the approval to enable Indian oil major ONGC Videsh to join exploration efforts in two blocks, acquired in August.
ONGC Videsh has signed an agreement with Turkish Petroleum Overseas Company to acquire 49 per cent stake in two on-land oil and gas exploration blocks in Libya.
Libya has also sought Indian participation in some of the existing heavy industries and infrastructure projects. It has reportedly submitted a list of prospective projects for investment.
On the issue of around $38 million outstanding dues to 10 Indian companies since 1984 and manpower and visa related issues, Libya has assured a speedy redressal through authorities concerned.
The next session of the Indo-Libyan Joint Commission would be held in Tripoli October next year.
Source: IANS
Source: IANS