Tea production and exports from India have been witnessing a consistent decline over the past few ye...........

Geography Agriculture

Tea production and exports from India have been witnessing a consistent decline over the past few years. What could be the possible reasons behind this?

1. Rise in competition from other tea producing countries like Kenya, Sri Lanka etc.

2. Destruction of plantations by heavy rains and landslides.

3. Maturity of trees in most of plantations.

4. Rise in labour costs.

5. Increasing number of small to medium sized plantations.

Select the correct answer using the codes given below.

1,2,4 and 5 only

1,2,3 and 4 only

1, 2 and 4 only

All of the above

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Explanation:

http://www.dawn.com/news/1219883 (read the article)
Most of the tea plantations in India have been planted during colonial times and have attained their maturity levels. As a result their productivity has declined.
Also, recent floods and landslides in the North-east region have destroyed many plantations there lowering the production.
Tea plantations are highly labour intensive and wages form 60% of total input costs. The rise in wages due to high minimum wages set by several state governments coupled with decline in exports due to weak global demand and increasing global competition from other tea producing countries has led to a crisis in the Indian tea Industry.
(students should read through some of the important features of plantation labour act)
Finally, there is a rise in number of small to medium sized tea plantations which are unable to realize economies of scale and compete in a price competitive market.