Production and exports have been cyclical in movement as the industry is susceptible to climatic changes. and, by virtue of being a commodity, price swings are not out of place.

India happens to be the leading producer of tea in the world. It is predicted that production in the current year will touch 805 mkg as compared to 835 mkg last year. With seven mkg of imports, the total crop availability is expected to be 837 mkg in 1999.

After providing for a domestic consumption of 657 mkg, the industry has projected a much lower export figure at 170 mkg in 1999 as compared to 206 mkg in 1998. Blame it on Russia is what the industry says.

Prices although may not shoot to phenomenal levels. Certain corrections in low prices may take place and in the new year the tea prices are expected to remain firm.

Major concerns for the industry remain rising costs of production and value-addition. Integration of the Indian tea industry through improvement in productivity, cost competitiveness and adherence to quality and hygienic standards will be key indicators of growth.

The main constraints are a severe need for land where tea can be cultivated as, the area under tea has been a mere seven per cent over a ten year time-frame, as compared to much higher levels in other producing countries.

According to the planters India has been portrayed as an unreliable supplier in the global market not for its won fault alone. A fluctuating policy framework in many ways has shaped its export curve and value-additions in the domestic market as well.

Possibly, the government on its part thought it was justified enough. The industry was protected and it could hence wrest certain controls.

However, now at the crossroads of a more liberal framework allowing for easing out the tariff controls, it remains to be seen how India positions itself on the global platform which is witnessing a transition in tea from being a mere commodity to becoming a branded product.