For tea, which happens to be a product, a commodity, a culture and the most common beverage in terms of adaptability, the year in retrospect was indicative of primarily good fortunes for the industry in spite of its plea for correcting certain fiscal and non-fiscal policies troubling it.These increasing policies intervened in areas of production, exports and prices dampened the industry's efforts to boost growth, opine industry experts.As the year comes to a close-production and prices have been on a higher platter, combined with brighter export prospects, and so much so, with the tea scrips witnessing a favoured status after a long time, the industry has much tocheer.

The year started on a high note as far as prices were concerned : the high prices carried forward since end-1997 and which continued till the first few months of the current year was mainly attributed to a global shortfall. Possibly it was the high prices which made it difficult to be branded as a common man's drink--Nivedan was a contribution by the industry for low-priced economy teas.

However, the industry contended that this increase was not a real increase. This was, as they expressed, tea prices in India moved up by just 40 per cent in the last few years compared to almost a 65 per cent rise in Sri Lanka, 60 per cent rise in Malawi and a nearly 50 per cent increase in Kenya.The government in another significant move allowed for import of tea for re-export purposes, whereby 25 per cent of the teas imported by EOU/EPZ may be sold within the domestic tariff area. The industry said, perhaps it was a knee-jerk reaction to the high prices of tea. The government tried this for six months untilJune, after which it decided to discontinue it altogether. The industry raised a major objection as the government introduced a 8 per cent tax on packet teas this year. Initially giving an impression that it would include all teas including bulk teas, the government later rectified the clause where it stated that tea packages between 100 grams and 20 kg will be subject to this duty. While rectification, it complicated matters more as the industry was charged an excise for 21 days --the industry has not paid it as yet. The industry laments that packet tea growth has been tardy this year compared to a healthy 7 per cent growth in 1997.

In yet another experimentation with tea, the government removed the commodity from the aegis of the Essential Commodity Act-which unfolded a big debate on the rationale behind the existence of the Tea Marketing Control Order under the Tea Act, which accounts for the distribution and monitoring of the movements of tea.

Meanwhile, it was towards the end of September, whenproducers who were enjoying considerable price rises up to now were taken off-guard over a reverse trend in prices now. Prices plummeted by over Rs 10-15 for certain varieties. Industry analysts contended that this was bound to happen as the market was correcting itself.

The industry brewed further-when came a fresh salvo from the government which decided that tea was one of the 2000 items that could be imported into the country from the Saarc countries on a nominal 10 per cent duty. The tea trade said in unison-this would jeopardise the industry as there was a price advantage for Sri Lankan or Bangladeshi teas over Indian teas.

On the other hand, in October, the Saarc countries were deciding to come together to adopt common regional strategies in marketing, R&D in tea at the third Asian Tea Council in Singapore.

Back home, the Darjeeling tea industry was registering itself for a patent in the world market with a view to create an independent brand equity. Tea prices fell, then stabilised-it was thelower end varieties registering a fall and the premiums, and quality teas justifying increases.The year-end came up with few surprises: the industry's plea to allow them a benefit of the deduction under section 80HHC of the Income Tax Act was granted. The fear of exports lessened: as the Russian government decided to accord due status to a long-term agreement of lifting 100 million kg from India over a six-year time frame. The year wrapped up with a record projection of reaching a production of 860 million kg for one of the largest plantation industries and definitely the largest in eastern India. It was a year of good fortunes for the industry albeit certain ad hocism by the government for justifying certain policy changes.