Steps to improve tea production and the continued high taxation of farm income of planters will also figure at the two-day 106th annual conference of the United Planters' Association of Southern India (Upasi) which begins on Monday in the southern town of Coonoor.

"Improving the quality of South Indian tea will be a major issue," K. Jacob Thomas, UPASI's president, told Reuters. "Large importers of Indian tea like Russia have expressed their unhappiness about the poor quality of our tea."

Thomas also said boosting tea production, by improving irrigation facilities with assistance from the government and banks, was also on the conference agenda. Poor rains in India's main tea areas have hit output and the country is forecast to produce 825 million kg of tea in 1999 after a record 870million in 1998.

During 1998, India exported 205.6 million kg of tea, half of which was imported by Russia. Lower-priced tea grown in southern India constitutes nearly 80 percent of imports to Russia.

Russian importers have, however, been complaining of the poor quality of southern Indian tea. At a recent international tea conference, Russian importers said they would shift to better quality northern Indian tea after an improvement in Russia's general economic situation.

Coffee quality key issue

Anil Bhandari, a leading coffee grower, said improving the quality of Indian coffee exports would be a key issue for coffee growers as poor-quality coffee had resulted in low returns in the last two years. "We will also discuss hosting a major international coffee conference to help boost the image of Indian coffee," Bhandari said.

Thomas said the glut in rubber output and low prices would be the key concern of rubber growers. Three-fourths of India's rubber growers are in the southern state ofKerala.

India has a surplus rubber stock of 50,000 to 60,000 tonnes due to a slump in tyre production caused by a general economic slowdown during 1997 and 1998. Thomas also said UPASI would continue to lobby for lower taxation of planters' farm income and also highlight labour welfare measures in tea plantations.