Government to Launch Startup Support Program to Boost Coffee Production

The government is preparing to introduce a startup support program targeting young entrepreneurs to promote Nepal’s growing coffee culture and increase domestic production.

According to Phanindraraj Pandey, executive director of the National Tea and Coffee Development Board, the procedure for providing grants to young entrepreneurs engaged in coffee production, processing, and distribution is in its final stage.

He said the government plans to provide grants of up to Rs 1 million each to three young entrepreneurs in the first phase as a pilot project in the current Fiscal Year 2025/26.

“Once the Ministry of Agriculture and Livestock Development approves the procedure, the program will be implemented within a month,” he said. “After approval, the board will call for applications, assess the submitted business plans, and select three outstanding entrepreneurs for grants in the first phase.”

Pandey said the number of beneficiaries and the grant amount will be increased from the next fiscal year.

The board said it is prioritizing a youth-focused startup program to promote commercial coffee production even in areas with limited resources.

Although coffee culture has been growing rapidly in urban areas, domestic production has not kept pace with the rising demand, leading to a steady increase in imports in recent years. The board said the program aims to boost both production and consumption within Nepal.

Area and Production Rise, but Exports Decline

Coffee farming area and production have increased over the past five years, but exports have continued to fall, according to the board’s statistics.

In Fiscal Year 2020/21, coffee was cultivated on 3,052 hectares of land, producing 314.5 metric tons. Nepal exported 72 metric tons of coffee worth Rs 9.6 million that year, while imports totaled 198 metric tons.

By Fiscal Year 2024/25, the cultivation area had expanded to 5,500 hectares and production had more than doubled to 641.9 metric tons. However, export volume dropped to 63 metric tons during this period.