According to Ashraf, there has to be parity in trade agreements between SAARC nations. If duty-free import of tea is allowed from Sri Lanka and Bangladesh, India should be able to export to Pakistan without duty.

Pakistan market offers huge potential, says Ashraf, wondering why that country should source its tea from far off countries like Kenya and Indonesia when India can supply all its requirements. Pakistan's tea consumption stands at about 150 million kg a year.

India produced 865 million kg in 1998 compared to 810 kg in 1997. Of the total output of about 210 m kg, the internal consumption stands at about 630 million kg. TheNorth Indian tea had an outstanding crop in 1998 while the South Indian tea production was lower by 6-7 million kg compared to the production in 1997. The free trade is to affect the local market more because, it is cheap tea that will be brought in, which cannot be routed for export. Last year, 40 million kg of tea was imported for reexport from India, says Ashraf.

According to Association of Planters in Kerala (APK), even the exports are going to be affected by the free trade agreement for tea. There is a direct correlation between the prices of tea and export, says APK. Whenever the auction prices have fallen below an average of Rs 45 a kg the exports have been affected, according to APK.

Production of South Indian tea this year was lower because of severe weather conditions -- prolonged monsoon up to October, and not because of old bushes, said Ashraf. In South India, replantation is not going on a massive scale because the average productivity is about 1000 kg per hectare, which is much higher thanin North India, said Ashraf. Even hundred-year old bushes yield very well, he said. In Assam and other areas, the soil is not so rich which requires replantation every 30-35 years to increase productivity. The Tea Board is providing attractive subsidy which is availed of by the corporates to replant the tea estates. The tea industry which is heavily affected by the dual taxation structure, says Ashraf. The government should frame rules for taxing the corporates at one point, he said. The state's agriculture tax at 55 per cent is highest among the southern states.

Tea industry in Kerala faces another trouble from a militant labour force. The workers' problems keep surfacing at regular intervals that all tea growers and traders want to put an end it, says Ashraf. There have been talks to take a unified action against the `blackmail' but nothing concrete has emerged so far, he said.