Nepal's Tea Industry Eyes New Markets After Export Challenges with India

Nepal's Tea Export Strategy Shifts

Kathmandu: Following a disruption in tea exports to India, a report from a government task force has recommended that Nepal enhance the quality of its tea while also seeking new markets, officials revealed on Friday.

Exports to India were halted on May 1 due to stringent testing regulations imposed by Indian authorities. However, after diplomatic negotiations, these regulations were relaxed, allowing exports to resume on June 30.

This situation has provided valuable insights for Nepal, which relies on India for approximately 86% of its tea exports.

The task force, established to tackle the export disruption, has suggested that Nepal explore alternative markets beyond India, according to sources from the Ministry of Agriculture, Forest and Environment. The official release of the report is still pending.

Deepak Khanal, director of the National Tea and Coffee Development Board of Nepal, stated, "Our focus is now on enhancing tea quality and diversifying our market reach." He emphasized the need for tea producers to improve their product quality.

Potential alternative markets for Nepalese tea include China, Pakistan, the US, and Europe, Khanal noted, while also acknowledging the importance of the Indian market for Nepal's tea exports.

In addition to exporting a significant portion of its tea to India, Nepal's tea gardens, primarily located in the Ilam and Jhapa districts of Koshi Province near the Indian border, often employ experienced Indian technicians for tea processing.

Currently, Nepal produces around 26.5 million kilograms of tea annually, combining both CTC and orthodox varieties, providing employment for over 60,000 workers.

After two months of stringent testing that affected exports to India, the new regulations state that only 20% of tea consignments sent to India will undergo testing for export approval.