According to Prabhu, tea drinkers in Kerala will get an opportunity to know the unique quality of Assam teas, which enjoy a special place in the international market. ``Best qualities of South Indian leaf teas are being offered at Calcutta auctions,'' he said. So the proposal is not something out of bounds, he added.

The small demand here is being catered to by large producers with their packaged tea. The major tea traders and brokers who are based in Calcutta can arrange for for the best of Assam teas at the Kochi auctions, said Prabhu.

According to industry sources there is a demand here, but there is a need to market it in the domestic segment and create a demand. The requirement should be at least one truck load for the transportation to be viable.

The quality of teais going to rule the international market, Prabhu said, adding, ``unless the quality of South Indian tea is improved and maintained, it cannot make any inroads into the export market as well as the domestic market.''

He said that there is a wide gap between the prices of quality teas and poor teas sold at the Kochi auctions. The difference ranges between Rs 20 and Rs 40 per kg. ``This shows that the buyers prefer quality teas and they are ready to pay more for that,'' he said.

Prabhu welcomed the removal of trade restrictions in imports, specially the duty-free imports of tea from SAARC nations. He feels that such a move will only induce the domestic tea producers to manufacture better quality teas.

Producing quality teas will be the answer to ward off competition from Sri Lanka, the country's main competitor, he said.

Availability of quality teas at reasonable prices will help Indian teas to meet the challenges from tea import, at the same time help making inroads into the global market, Prabhusaid.

South Indian teas, which have had a reasonable export performance can get better results by providing more quality teas at the auctions. Certain traders are re-exporting some of the imported Sri Lankan teas while a certain quantity is being marketed domestically.

South Indian tea production is sitting comfortable presently compared to the all-India production where there is a shortfall of about 55 million kg.

All India production has fallen to 266 million kg for the first six months of the calender year 1999 from 321 million kg during the same period last year.

There was only a one month low for the South Indian teas but a better September crop has propped up the stock position. The shortage is being felt mostly in the North Indian tea where the harvest season is laid off for three-four months because of acute winter.

The carry forward stock from the previous year had kept the prices low in the beginning of the year. Now the tea prices have shot up at the Calcutta auctions, while at the Kochiauctions the teas are dearer in the range of Rs 3-5 for all varieties.

The weak Russian demand is also keeping the prices depressed at Kochi, Prabhu said. The average auction price of tea fell to Rs 61.65 per kg in the first half of 1999 from Rs 79.90 per kg for the same period last year.