The production was 53 million kilograms in FY 2006 against 60 million kilograms in FY 2005, according to sources in the tea industry in Moulvibazar, a major tea producing area in the country.

The country exported around 47 million kilograms in the last financial year, down from the previous year's 60 million kilograms.

The earnings fell by around 47 per cent, from Tk 742.62 million in 2005 to to Tk 469. 59 million last year, the sources said.

On the other hand, domestic consumption is increasing. The country may have to import tea within few years if this situation continues, the sources apprehended.

They said the main cause of fall in production last year was drought in the tea producing belt. Out of about 160 tea gardens in the country, 123 are in Moulvibazar district.

Tea export has been declining over the last several years. Quoting Bangladesh Tea Board officials, the sources said that fall in production, rise in domestic demand and price hike at home are the main causes of fall in export.

Foreign buyers can not compete with domestic buyers who offer higher prices at tea auction market in Chittagang, they said.

Supply of tea to the auction market has also declined due to production shortfall.

In 2006, tea price rallied around Tk 104 per kg in Chittagang auction market while its was Tk 78 in the previous year.

An official of the auction market said arrival of the commodity at the auction market also declined due fall in production.

There is an agreement with Pakistan to supply 10 million kilograms of tea every year but it could not be fulfilled in last financial year, they said.

Talking to this correspondent, tea industry sources said the domestic demand will up further and if the trend continues, Bangladesh will turn into a tea importing country if comprehensive steps are not taken involving the government and garden owners to increase production.