In official information about Kazakhstan-India relations, there is mention of a joint interdepartmental group to settle the so-called 'tea debt'. This refers to a commercial dispute related to tea deliveries in 1993 that has remained a subject of discussion between the parties for more than three decades.
HOW THE DISPUTE AROSE
According to kzlg.media, on 26 August 1993, the company Rassik Woodworth Ltd entered into a contract with the organisation Kazpishchepromsyryo for the supply of 3,000 tonnes of tea. In court documents, the Kazakh side is described as a state foreign trade organisation.
Under the terms of the agreement, Kazakhstan was to settle the account through reciprocal deliveries of goods within 120 days. For late payment, 15% annual interest was stipulated. By a supplementary agreement, the parties provided that if barter deliveries were not possible, payment was to be made in US dollars. The materials also state that the fulfilment of obligations was guaranteed in writing by the Ministry of Foreign Economic Relations of Kazakhstan.
WHAT IS KNOWN ABOUT THE DELIVERIES AND THE DEBT
The deliveries were distributed among the companies Tata Tea, Assambrook Exports and Harrisons Malayalam.
The share of Tata Tea is reported to have been about 1,225 tonnes. The company dispatched five shipments of tea between 30 September and 29 October 1993, with a total value of $3.185 million. According to court materials, payment was not made in full, and the written guarantee from the ministry was not honoured.
After the debt arose, a representative of the Kazakh ministry explained the delay by citing economic difficulties and stated an intention to settle by the end of March 1994. It is noted that no data on the fulfilment of this commitment is provided.
POSITIONS OF THE PARTIES
As set out in the publication, Indian court documents consider the written guarantee from the Ministry of Foreign Economic Relations of Kazakhstan as grounds for the obligations.
At the same time, according to the source, the Ministry of Finance of Kazakhstan informed the Indian side that, under the legislation of that period, such a guarantee is not recognised as a state-guaranteed debt. Consequently, Kazakhstan views this debt as an obligation of economic entities, rather than of the state budget.
HOW THE MATTER WAS DISCUSSED LATER
In July 2007, the agency Kazakhstan Today reported on a meeting between Vice-Minister of Economy Berdibek Saparbayev and the Indian Ambassador Ashok Sajjanhar.
At that time, two amounts were mentioned: around $5.7 million in debt for tea and around $7 million for Indian pharmaceutical products. The Kazakh side is reported to have again stated that these were debts of economic entities and expressed a willingness to take measures to resolve the issue.
WHAT IS KNOWN ABOUT THE JOINT WORKING GROUP
To resolve the matter, Kazakhstan and India established a joint working group. According to the source, its first meeting took place on 25–26 January 2011 in Astana, but a second meeting did not take place.
