Open AccessProspects for the Pakistan Tea Industry
Author(s) -
Ian Carruthers,
G. D. Gwyer
Publication year - 1968
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v8i3pp.431-451
Subject(s) - rationing , earnings , production (economics) , consumption (sociology) , economics , position (finance) , foreign exchange , agricultural economics , government (linguistics) , business , international economics , economic policy , monetary economics , economic growth , macroeconomics , finance , health care , social science , linguistics , philosophy , sociology
Pakistan's foreign-exchange earnings from tea, which duringthe period 1951-53 averaged more than 40 million rupees annually, hadfallen to an average of 6 million rupees annually during the period1964-66. This decline in earnings resulted from the diversion of teafrom export to domestic markets where higher prices reflected the extentto which the growth of domestic tea consumption had exceeded the growthof production. Recognising that continuation of this trend would lead toPakistan becoming a net importer of tea with further loss of foreignexchange, the government took steps in the early sixties to en¬courageexpansion of tea production as an alternative to restraining demandthrough rationing or eventual import controls. In this paper our primaryconcern is to establish, through analysis and forecast of market forces,the like¬lihood of Pakistan being able to maintain its self-sufficiencyposition in tea production up to 1975 without recourse to marketcontrols, and to suggest policy measures that will help in achievingthis objective in the longer term. An ancillary purpose is to recommendtechnical and economic changes that will improve the efficiency of teaproduction.