Kathmandu, June 18: Tea industry owners have announced an indefinite shutdown of tea factories and plantations across the country beginning today, June 18, citing a severe crisis facing Nepal’s tea sector.
The decision comes after exports of Nepali tea to India were disrupted following the implementation of a new Standard Operating Procedure (SOP) by the Indian Tea Board.
According to Shukra Dahal, General Secretary of the Nepal Tea Producers Association, the annual trade of CTC and Orthodox tea produced in Nepal is valued at approximately Rs 12–14 billion, of which around Rs 5 billion worth is exported to India.
At a press conference held in Bhadrapur on Wednesday, the Nepal Tea Producers Association, Jhapa, announced that tea factories and plantations would remain closed indefinitely from Thursday.
Dahal stated that Nepal could explore alternative export markets, including Bangladesh and Pakistan, and urged the government to take necessary measures to promote tea exports to third countries.
Industry representatives allege that the Indian Tea Board’s new import provisions have been introduced in a manner that could severely harm Nepal’s tea industry and create difficulties for Nepali investors.
Despite maintaining high quality standards and enjoying strong demand in Asian and European markets, local tea producers have been unable to fully capitalize on these opportunities due to inadequate marketing and limited market diversification. As a result, a significant portion of Nepali tea is exported to India, where it is often rebranded and re-exported to foreign markets under Indian labels.
People’s News Monitoring Service.
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