Coffee imports into Nepal have increased significantly due to insufficient domestic production, according to the National Tea and Coffee Development Board. The growing coffee culture in Nepal has boosted consumption, but limited production areas have forced the country to rely heavily on imports.

Data from the Department of Customs shows coffee imports increased by 73 percent over the past three years. While imports were valued at Rs 242.6 million in Fiscal Year (FY) 2021/22, they surged to Rs 419.8 million in FY 2023/24. During this period, coffee exports rose modestly from Rs 127.5 million to Rs 149.2 million.

Deepak Khanal, director of the National Tea and Coffee Development Board, attributed the sharp rise in imports to the failure of domestic production to meet the growing demand.

“Coffee consumption is growing rapidly, but production has not kept pace,” Khanal said. “A lack of research into new coffee varieties and limited commercial coffee plantations are the main reasons for the production shortfall,” said Khanal.

In FY 2021/22, Nepal cultivated coffee on 3,346 hectares, which increased to 4,309 hectares by FY 2023/24. However, production of green bean coffee reached only 501.3 metric tons in the last fiscal year, while domestic consumption exceeded 2,200 metric tons annually. Around 17 percent of Nepal's coffee production is exported, the board reported.

To address the production gap, the board plans to establish 61 new coffee gardens on 610 ropanis of land with a Rs 10 million investment in the current fiscal year, focusing on areas near the Mid-Hill Highway. The initiative targets small farmers, offering subsidies for up to 10 ropanis per farmer.

The government also aims to expand coffee cultivation by promoting good agricultural practices, organic certification, and marketing support for both domestic and export markets. Nepali coffee continues to fetch premium prices internationally due to its superior taste and quality, selling at an average of USD 16 per kilogram.

The board emphasized the need for sustained efforts to enhance commercial coffee farming and reduce reliance on imports.