A tea company from Assam has signed an agreement with a Chinese company for exporting CTC (crush, tear and curl) tea.

The agreement was signed between Guizhou Lingfeng Technology Industrial Park Company Limited, Guizhou province, with Aideobarie Tea Estates Private Limited, Jorhat, on Wednesday at the China International Import Expo in Shanghai, in the presence of the officials of Guizhou province.

“We will be exporting 100 tonnes initially,” Raj Barooah of Aideobarie Tea Estates Private Limited told The Telegraph on Friday.

The agreement said both the sides would establish a good cooperative relationship and confirmed long term cooperation.

A source said an agreement with a Chinese company meant that it has the backing of the Chinese government.

Guizhou is located in the eastern Yunnan-Guizhou plateau of Southwest China.

According to the agreement, the Chinese company will buy CTC black tea from Aideobarie and the latter shall buy green tea from the Chinese company. Procurement requirements have to be submitted three months in advance. “We have to recognise the size of the Chinese economy and think about mutual benefits and cooperation,” Barooah said.

Both the companies will promote partner products in their respective home countries. The promotion methods include new packaging products, blending and making new products and others.

“It’s a cooperation and so we have to promote each other in our respective countries,” Barooah said.

In 2017, India exported about eight million kg of tea valued at $25 million. This growth is mainly because of the rising demand for Assam CTC black tea, known for its strong colour and flavour, which goes well with milk-based tea.

Another official said CTC teas are in huge demand in China and they are ready to import a large quantity.

Sources said the embassy of India in Beijing, in partnership with China Tea Marketing Association (CTMA) and Tea Board of India, had organised business interaction and tea appreciation events in Beijing on October 24-25 to promote Indian tea in China. A buyer-seller meet and a tea appreciation seminar was organised on October 24 and more than 150 Chinese tea importers had participated in the event.

The Food and Agricultural Organisation says China is responsible for the accelerated growth in global tea output, as production increased more than double from 1.17 million tonne in 2007 to 2.44 million tonnes in 2016. The massive expansion is also a result of increased consumer health consciousness and rapid development of herbal tea beverages characterised by the tradition of drinking tea.