A trade agreement between Sri Lanka and India could offset a possible shortfall in Indias tea production by the turn of the century, said a senior industry official on Monday.
Indias production has been growing leaps and bounds over the last decade but I dont see how that could be maintained without expanding the area under tea cultivation, said Chrisantha Perera, director of Forbes & Walker.
Sri Lanka had tea consumption of just over one kilogram per head per annum. Perera said if India consumes as much as that, they might not have enough tea to export in the future.
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He said a trade arrangement could suit both major tea exporters.
India could buy some of the not so high value tea from Sri Lanka which is suitable for its domestic consumption, and thus make available for export some of its high value tea, said Perera.
This would, in turn, give Sri Lanka a market for its lower quality tea, he added.