If activated, there would be no grouse over free trade within the Saarc block according to a top industry official. The damage done by unilateral government decisions should be contained by informed and judicious use of the Saarc Forum and its Preferential Trading Arrangement, Sapta.

This would provide room for the trade and industry to jointly suggest how best advantages of respective countries can be leveraged. According to the industry official, the informed policy could be to conduct business within the trade block.

The silver lining happens to be in the form of agreements taken by almost all the major countries withinthe trade block to concede to such a decision. While Sri Lanka, Bangladesh and Nepal have agreed, Pakistan a potential market of almost 130 million kg (mkg) also plans to put up the idea to its own government. It is left for the union governemnt to speed up on this issue, say industry and trade circles.

The whole idea of a Saarc Tea Council would ensure securing a basic market and henceforth achieving comfort levels for the countries. According to Sapta, two countries within a trade block have to agree to a national scheme of concessions. This will help regulate tea movement within the region and also monitor tea standards and exchange ideas on the commodity.

The tea industry's contention is that this will also pave the way towards the adoption of joint regional strategies, in terms of increased marketing, research and development and exchange of training programmes as part of a broader common strategy within the Saarc block. This is more justified for the fact that India, Sri Lanka and Bangladeshtogether produce over 50 cent of the world's total tea crop. Taking Pakistan into account the southern trade block also consumed about 30 per cent of its tea produced.

Understanding and exchange of information on various growing practices at the estate level and plantation management techniques could also go a a long in stepping up levels of productivity, he stated.

Of late, the tea industry has been on the edge with the possibility of a duty-free status being accorded to tea. This policy by the government incorporates the imposition of a zero-duty structure on imports of tea from Sri Lanka following the signing of the bilateral agreement between the two countries in December last year.

This move, feel producers, would have serious repurcussions on the tea industry especially affecting the market shares of a large segment of the tea industry especially the Dooars, Terai, Cachar and south India. The tea trade is of the opinion that the move to allow imports at zero duty will seriously jeopardise itsgrowth plans in the short, medium as well as in the long-term.

It is here perhaps, where the necessity of a Saarc Tea Council is felt the most, said an industry observer. The industry has been very critical of the government move saying that it this will in no way counterbalance the newly imposed 8 per cent excise duty on packet teas of content over 100 grams. There will, therefore be no incentive to packet teas in India and majority of imports will take place through packet form, said industry sources. Not only so, the tea producers will also find less meaning in stepping up production.