It is clear from the table that production as well as exports of tea from India is on decline.

Some of the reasons for this are fragmented nature of the industry, losing of major markets such as Iraq, Russia, and CIS due to political reasons. The organically grown products are gaining popularity worldwide and fetching premium price both at the domestic as well as in international market. However Organic Tea plantations are still at the nascent stage in our country. Indian tea exports have declined by 13.4 per cent in the first half of calendar 2007. Between January and June, exports stood at 75.7 million kg against 87.5 million kg in the same period in 2006, official statistics show. Exports from South India witnessed a 14.8 million kg fall while that from North India increased by 3.1 million kg. North India accounts for 80 per cent of the countrys tea production and exports Indian exporters have been at loss due to rupee appreciation. Tea production yield is decreasing due to successive and rampant cultivation and technological infusion is required for higher production from Tea plantations. There is clear cut lack of Institutional financial support or income risk / price risk management, as tea prices are subject to heavy price fluctuations in the recent past and to enable the tea farmers to fight adverse conditions. There has been reports of labour unrest from tea plantation specially form those located in West Bengal thereby further decoupling the problems of tea growers in the country.

The signing of Free Trade Agreement with Srilanka in 1999 and subsequent beginning of tea imports from at a preferential tariff of 7.5% has further aggravated the problems of Indian tea producers and exporters. More importantly Srilanka has achieved this high production without adding an inch of land to cultivated area. Sri Lanka has also identified china and India as two potentially byers India has granted duty concessions of 15 million kg of SriLankan tea under the Indo - srilanka Free Trade Agreement. Quality tea products are in high demand in India to the top bracket of Indian market, the upper middle cIass, who is looking for quality than price. Srilanka has been successful because of the use of high-yielding varieties ,scientific methods for harvesting & plucking, intro of new m/c resulting in high productivity and production.