The move follows government decision to allow imports of 200 items from South Asian Association for Regional Cooperation (Saarc) nations under open general license (OGL) and an agreement signed with Sri Lanka for free trade agreement.

"The government has last week decided to allow tea under concessional customs duty which could get reduced to zero level as per our information," Indian Tea Association chairman VK Goenka told reporters here on Thursday.

The move had been contemplated ns and the domestic tea industry would be put at a disadvantage, he said.

While the association was against imports of tea in any form into the country in view of the progress made in production, it favoured that government should at least keep the existing duty structure intact.

At present, tea imports attract 10 per cent basic customsduty, five per cent additional duty and four per cent special additional duty, he said, adding the five per cent additional duty imposed by the United Front government would be discontinued from March 31 this year.

Goenka said government move came at a wrong time with most of the Saarc members had accepted the concept of a "Saarc Tea Council".

"The concept was received with good response by Sri Lanka, Pakistan and Bangladesh. India, too, was a signatory to it. But then came this move which was least expected," he said.

Stating that the issue had been taken up with the commerce ministry officials, he said the reply the industry had got was that the balance of trade with Sri Lanka was in India's favour.

India exports items worth Rs 500 crore to the island nation, while importing goods valued at Rs 20 crore.

The immediate impact of tea imports from Sri Lanka would be on south India and then it would have a cascading effect on terai, dooars and cachar tea grown in the north-east, Goenka said.

"What wedemand is a level-playing field, fair competition which is reciprocal and based on principles of equity," he said.

The association had also met Assam and West Bengal chief ministers to take up their case with the centre, while the United Planters Association of South India, the apex body of plantations in the south, had taken up the issue with Tamil Nadu and Kerala governments, he said.