An international sample of 349 British-owned firms is analyzed to test the effectiveness of the International Tea Agreements of 1930 and 1933. Although the agreements reduced output overall, in 1930 there were significant regional differences in the extent of compliance, with firms in Eastern India reducing output more than did firms in Ceylon. These differences can be attributed to regional differences in organizational structure. Archival evidence suggests that the breakdown of collusion in 1931 and 1932 was due to a bargaining conflict between established producers in India and Ceylon and the newer plantations of Java and Sumatra.

Producers of commodities like wheat and sugar may envy the facility with which the tea growing industry obtained a 30 percent rise in average tea prices and a 90 percent enhancement of tea share values—all within the space of a little more than six months.

The Economist, 26 August 1933