Nepal tea exports resume as Kathmandu targets quality boost and new markets

Kathmandu,UPDATED: Jul 3, 2026 20:28 IST

Nepal is looking at improving tea quality and finding new markets after a recent disruption in exports to India, officials said on Friday. A government task force set up to examine the issue has suggested that Nepal should reduce its dependence on a single market, even as exports to India have now resumed.

The disruption began after Indian authorities introduced strict rules for testing Nepalese tea, halting exports from May 1. Following diplomatic efforts by the Nepal government, Indian authorities agreed to relax the rules, and exports resumed on June 30. The episode has been seen as a learning experience for Nepal, which sends nearly 86 per cent of its tea exports to India.

Sources at Nepal's Ministry of Agriculture, Forest and Environment said the task force report has recommended exploring alternative markets for Nepalese tea apart from India. The report has not yet been officially released.

"We have now focused our attention to improve tea quality and diversify the market," Deepak Khanal, director of the Tea and Coffee Development Board of Nepal, said. "We have asked the tea producers to further enhance the quality of their products." Khanal, who is also the board's spokesperson, told PTI that China, Pakistan, the US and Europe could be alternative markets for Nepalese tea.

He said, however, that the Indian market cannot be ignored in the export of Nepalese tea. Apart from taking nearly 86 per cent of Nepal's tea exports, Nepal's tea gardens, located mainly in Ilam and Jhapa districts of Koshi Province in southern Nepal along the Indian border, mostly hire senior Indian technicians for tea processing, according to Khanal.

Nepal currently produces 26.5 million kg of tea every year, including both CTC and orthodox varieties, and the sector directly employs more than 60,000 labourers, Khanal said. After two months of stricter testing that had disrupted exports to India, the new arrangement allows testing of only 20 per cent of consignments sent to India before export approval, marking a partial easing of the rules.

In sum, the disruption in tea exports to India has pushed Nepal to focus on better quality and wider market access, even as India remains central to its tea trade and production chain.

With PTI Inputs

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