A、falling demand. B、increasing popularity of soft drinks. C、high production costs. D、lower wages paid to domestic tea growers.

The labor problems were the latest bad news for an industry that has been hit in recent times by high production costs and slumping demand. Tea industry officials say wages are lower in other tea-producing nations. Labor costs account for more than half the total cost of tea production. The India Tea Association’s deputy secretary, Pranjal Neog, says Indian tea, one predominant in world markets, has been steadily losing out as a result. The tea industry says it is also facing problems in the domestic market, which consumes 70% of the beverage produced in the country. In recent years, demand has stagnated or even declined in some areas due to the growing popularity of such beverages as soft drinks--particularly among younger people. Indian tea has traditionally dominated world markets since a few cases were exported to Britain in the mid-19th century. But now, says tea growers, they only see tough times ahead.