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Abstract

This study compares the performance of the tea industry of Assam and West Bengal of India between two time stretches each spanning over six years; one ending in 2006-07 - the pre-reform regime - and the other beginning in the next year- the post-reform regime. The basic question addressed is whether reform policy led to improvement in technical efficiency of the tea industries of these states. The study uses stochastic frontier approach and introduces heterogeneity of tea gardens. Consideration of both Assam and West Bengal tea gardens adds unique flavour to this study. The study the study concludes that rehabilitation package of Indian government in the form of reform has paid off even within the existing framework of the tea gardens.

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