Nepal’s tea industry is facing renewed pressure after repeated disruptions in exports to India, prompting producers and business leaders to warn that factories may eventually shut down if immediate diplomatic and policy intervention does not take place.

Industry representatives say the situation has become increasingly difficult after Indian authorities intensified procedural requirements for Nepali tea entering the Indian market.

Tea Producers Demand Immediate Government Action

Business leaders from Nepal’s tea sector have urged the government to act urgently and hold direct discussions with Indian authorities to prevent further damage to one of Nepal’s major agricultural export industries.

Former Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Hemraj Dhakal, stated that continuous export uncertainty is creating serious operational challenges for producers.

According to industry representatives, tea associations are preparing to jointly submit a memorandum requesting government intervention. Producers have warned that if export bottlenecks continue unresolved, many factories may no longer remain financially sustainable.

Why Nepal’s Tea Exports Are Facing Difficulties

Export concerns intensified after India earlier introduced requirements related to laboratory testing and quality verification of imported tea.

Although exports resumed following discussions between stakeholders, industry participants say additional testing procedures and stricter handling requirements have again slowed business activity.

Nepali tea exporters report that Indian importers have become more cautious due to compliance requirements and delayed approvals, reducing fresh purchase commitments.

Nepal’s Heavy Dependence on the Indian Market

Tea remains one of Nepal’s important export commodities, generating annual export earnings estimated at around Rs. 5–6 billion.

However, the sector remains heavily dependent on India.

Current trade figures indicate:

Around 80% of Nepal’s tea exports are linked to the Indian market
During the first ten months of the current fiscal year, Nepal exported approximately Rs. 3.35 billion worth of tea
Of this, nearly Rs. 2.71 billion consisted of CTC tea exported to India
Green tea exports reached approximately Rs. 280 million

This concentration has increased concerns among producers about long-term market vulnerability.

Can Nepal Find Alternative Markets?

Industry stakeholders believe premium orthodox tea from Nepal’s hill regions has stronger diversification opportunities in international markets.

Nepali orthodox and specialty tea products have already reached destinations including:

Australia
Japan
Germany
Italy
South Korea
Hong Kong
Russia
United States
France
Israel

However, producers note that replacing India as a destination for CTC tea remains significantly more difficult because of market structure, logistics, pricing, and consumer demand.

Industry at a Crossroads

Tea entrepreneurs argue that Nepal now faces a strategic decision: either strengthen export diplomacy and reduce dependency risks or continue operating under repeated market uncertainty.

With thousands of farmers and workers connected to the tea value chain, the outcome of current discussions could influence employment, exports, and agricultural income across Nepal’s tea-producing regions.

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