Nepal’s tea exports through the Mechi Customs Office increased by 32.5 percent in Fiscal Year 2024/25. The surge has been attributed mainly to increased demand from India, following supply shortages in Darjeeling and Assam.

Data from Mechi Customs show that tea worth Rs 4.21 billion was exported between mid-July 2024 and mid-July 2025. In comparison, the value stood at Rs 3.18 billion during the previous fiscal year.

According to Ishwar Kumar Humagain, information officer at Mechi Customs, a total of 15,416.76 metric tons of tea were shipped in the review period.

Industry analysts link the growth to a steep decline in Indian tea output caused by droughts in major production regions. This created a supply gap across the border, which in turn boosted demand for Nepali tea.

The export growth came despite a fall in Nepal’s domestic production. The country’s total tea harvest is estimated to have dropped from 22.5 million kilograms in FY 2023/24 to around 17.5 million kilograms in the last fiscal year. However, the higher prices of Nepali tea helped offset the lower volume. Average prices nearly doubled, reaching about Rs 180 per kilogram last fiscal year compared to Rs 90–100 a year earlier.

Mechi Customs plays a vital role in Nepal’s tea trade as most of the country’s tea is cultivated in the eastern hills, particularly in Koshi Province, which contributes 99 percent of Nepal’s total tea exports.

India continues to be the dominant buyer of Nepali tea, with additional shipments going to the United States, Japan, and China.

Total exports through Mechi Customs also increased, reaching Rs 25.14 billion in FY 2024/25. Exports of veneer sheets rose by 72.3 percent, molasses surged by 247.5 percent, and plywood increased by 7.6 percent. In contrast, cardamom exports dipped by 3.2 percent to Rs 7.67 billion, down from Rs 7.93 billion in the previous fiscal year. – With inputs from RSS