Tea Exports Slump 37 Percent in Four Months after High Growth Last Year

Nepal’s tea exports from eastern gateway decline sharply in the first four months of the current fiscal year compared to the same period of last year, the state-run national news agency RSS reported

According to the Mechi Customs Office, Nepal exported tea worth Rs 1.37 billion through the Kakadbhitta checkpoint in the first four months of the current fiscal year 2025/26. Ishwor Kumar Humagain, Information Officer at Mechi Customs, told RSS that a total of 4.69 million kilograms of tea was exported through the Kakarbhitta checkpoint during the review period.

In terms of value, exports declined by 37 percent year-on-year. During the corresponding period of the previous fiscal year, Nepal had exported tea worth Rs 2.205 billion, indicating a fall of Rs 831.7 million in earnings so far this year. Despite the current slowdown, Mechi Customs continues to serve as Nepal’s principal tea export gateway, as most of the country’s tea is produced in the eastern hills—particularly in Jhapa, Ilam and Panchthar districts of Koshi Province. The eastern checkpoint handles the overwhelming majority of Nepal’s tea exports due to its close proximity and direct road connectivity to the Indian market.

The latest decline follows a strong growth trend in the previous fiscal year. In FY 2024/25, tea exports through Mechi Customs had increased by 32.5 percent, with total shipments valued at Rs 4.21 billion, up from Rs 3.18 billion in FY 2023/24.

A total of 15,416.76 metric tons of tea was exported in FY 2024/25. The surge was driven largely by higher demand from India, triggered by production shortfalls in Darjeeling and Assam due to adverse weather.

Although Nepal’s domestic tea production fell from 22.5 million kilograms in FY 2023/24 to about 17.5 million kilograms in FY 2024/25, exporters benefited from nearly doubled prices, which rose to around Rs 180 per kilogram, compared to Rs 90–100 a year earlier.

India continues to be the dominant buyer of Nepali tea, while smaller volumes are exported to the United States, Japan and China.