Nepal’s tea exports through the Mechi Customs Office rose by 46.10 percent in the first 10 months of the current fiscal year, reflecting renewed optimism among tea producers and traders after a period of declining exports.

According to the Mechi Customs Office, tea worth Rs 3.68 billion was exported during this period, up from Rs 2.52 billion recorded in the same period of the previous fiscal year. In total, 13,886.77 metric tons of tea were exported from the Mechi checkpoint, the country’s primary customs point for tea exports.

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.

Tea farmers and exporters, who were discouraged by the continuous decline in exports until last July, are now optimistic as exports have been rising steadily since the beginning of the current fiscal year.

Experts have attributed the export growth to a supply shortfall in India due to droughts in Darjeeling and Assam, which led to increased demand for Nepali tea. Aditya Parajuli, President of the Nepal Tea Producers Association, told New Business Age earlier that India's tea production fell by over 100 million kilograms, creating a market opportunity for Nepali producers.

Despite Nepal also facing a drop in tea production—from 22.5 million kilograms last year to 17.5 million kilograms this year—higher demand and prices have offset the shortfall. The price of Nepali tea has doubled from around Rs 90–100 per kilogram last year to Rs 180 per kilogram this year.

Farmers like Parbat Dangi from Haldibari have reported improved sales and better prices. “Last year, Indian traders offered only Rs 60–70 per kilogram. This year, prices have risen significantly, and sales have improved due to high demand,” Dangi told New Business Age.

Nepal exports 99 percent of its tea, primarily to India, the United States, Japan, and China. According to the National Tea and Coffee Development Board, tea is cultivated on 27,500 hectares of land across Nepal. The country has 68 large tea factories, 930 orthodox tea factories, 38 CTC tea factories, and over 150 small orthodox processing units.

Tea entrepreneurs believe that improving quality could make Nepal’s tea industry more sustainable and profitable. By enhancing quality, Nepali tea could fetch higher prices in third-country markets, reducing dependence on India.

Other exports through Mechi Customs have also shown positive trends, the state-owned national news agency RSS reported. Veneer sheet exports surged by 79 percent, CR sheet by 62.20 percent, iron sheet by 7.70 percent, and molasses by a staggering 844.30 percent. However, cardamom exports decreased by 3.60 percent, totaling Rs 6.66 billion compared to Rs 6.90 billion in the same period last year.

In total, Mechi Customs facilitated exports worth Rs 21.45 billion in the 10-month period. (With inputs from RSS)