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.
According to data from the Mechi Customs Office, Nepal exported 12,388,469 kilograms of tea worth Rs 3.166 billion in the first seven months of the current fiscal year. In the same period last year, the country had exported 8,911,420 kilograms of tea valued at Rs 2.384 billion. The office chief, Rajendra Prasad Chudal, confirmed that exports have increased by 55.3 percent compared to last year, providing much-needed encouragement to farmers and exporters.
The surge in demand for Nepali tea is largely attributed to droughts in Darjeeling and Assam, India, which have significantly reduced tea production in those regions.
"This is the primary reason for the increase in exports," said Aditya Parajuli, president of the Nepal Tea Producers Association. Compared to last year, an additional 3.477 million kilograms of tea worth Rs 1.127 billion have been exported through the Mechi customs this year. Parajuli noted that tea production in India fell by over 100 million kilograms, leading to increased demand for Nepali tea. However, Nepal has also struggled to meet this demand due to its own production decline caused by drought.
Last year, Nepal produced 22.5 million kilograms of tea, but this year, production fell by 5 million kilograms to 17.5 million kilograms. Despite this decrease, rising tea prices in India have provided some relief to farmers. The price of Nepali tea ranged between Rs 90 and Rs 100 per kilogram last year but has now doubled to Rs 180 per kilogram.
Parbat Dangi, a tea farmer from Haldibari, expressed his satisfaction with this year's higher prices. Recalling last year’s struggles when he had difficulty selling CTC tea, he said, "This year, sales have improved due to high demand." He added that while Indian traders had previously offered only Rs 60–70 per kilogram, this year, the prices have risen significantly, making him and other farmers more hopeful.
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.
Koshi Province is a key agricultural hub in Nepal, known for its commercial tea cultivation. The province contributes 99 percent of Nepal’s tea exports, along with 90 percent of the country’s cardamom and 33 percent of its ginger exports.
Suresh Mittal, former president of the Nepal Tea Producers Association and a tea industrialist, said the positive trend in tea production and exports has boosted confidence among stakeholders. However, he warned that recurring droughts and climate change-induced uncertainties could pose challenges to the industry. He urged the government and relevant authorities to take proactive measures to mitigate these risks.
Mittal also emphasized the need for greater investment in quality, branding, and strengthening Nepal’s position in the global market. He stressed that achieving this would require collaboration between the government, private sector, and farmers.
Meanwhile, rising tea exports from Nepal and Kenya to India have sparked concerns among tea farmers in Darjeeling. Two months ago, they wrote a letter to Indian Prime Minister Narendra Modi, requesting a ban on tea imports from both countries. However, Nepali farmers and traders argue that Nepali tea's presence in the Indian market remains relatively small and will not significantly impact India’s tea industry.
Last year, a Nepali tea competition was held in China alongside other major tea-producing nations, including China, India, Kenya, and Sri Lanka. Several Nepali tea brands won awards at the event, highlighting Nepal's growing recognition in the international tea market.
