Challenges Faced by Nepalese Tea Exports to India
Image source, BBC/ Ashok Dahal
Nepalese exporters have reported difficulties in tea exports to India. On Wednesday in Parliament, Nepali Congress MP Suhang Nembang urged the government to address the issue.
Speaking during the zero-hour session of the House of Representatives, Nembang, from Ilam district’s Bagun area, appealed for diplomatic efforts to remove impediments in tea exports.
He noted that the recently implemented new regulations by the Tea Board of India have had direct negative impacts on farmers, workers, industrial exporters, and Nepal’s economy.
Nembang urged the government to promptly undertake diplomatic action to remove export blockages and to formulate clear policies to protect farmers and industrialists.
He highlighted Nepal’s long history of tea cultivation, emphasizing that nearly 15,000 farmers and over 60,000 workers depend on the tea industry for their livelihoods.
According to tea producers, Nepal exports tea worth at least 400 crore Nepali rupees annually to India.
What is the new directive issued by India?
On February 10, India’s Tea Board issued new guidelines for tea imports.
The directive mandates exporters to comply with a “Standard Operating Procedure”.
Each consignment must be sent to a laboratory for sample testing before shipment, and exports are only permitted after passing the test. Exporters must pay 11,120 Indian rupees plus applicable GST per test.
The guideline requires laboratories to provide test results within 14 days.
“We also have to pay warehousing charges for keeping tea in storage for 14 days. If the first test fails, a second test must be conducted within 48 hours at an additional cost of 15,000 rupees plus GST,” said Rabin Rai, General Secretary of the Central Tea Cooperative Federation.
“If the second test also fails, the tea must be destroyed in India,” he added.
‘Testing Reports Should Be Issued Quickly’
Nepalese producers do not object to the laboratory testing process itself.
“We only export quality products, but it would be easier if the report was provided within 24 hours,” Rai mentioned.
Deepak Khanal, spokesperson for the National Tea and Coffee Development Board, also expressed concerns regarding repeated disruptions under various pretexts affecting Nepalese tea.
“Sometimes they claim the quality is low, and at other times, they attempted to impose a 40% import duty, which was unsuccessful,” he said, noting that the new procedure has introduced additional difficulties.
Image source, BBC/Ashok Dahal
Previously, exporters could send tea from any truck within 15 days after a single sample was approved; now, each consignment must undergo separate testing.
The requirement to pass testing for every truck or consignment is causing export delays.
According to Khanal, laboratory reports lack a guaranteed timeline, and delayed results increase warehousing fees, adding extra costs and time burdens for exporters.
“Although reports are said to come within a short period, there is no certainty, resulting in additional warehousing fees and delays,” he explained.
Voices of Producers and Exporters
Tea producers and exporters have criticized delays in resolving these problems.
They say they have already informed senior officials in the ministries of Commerce and Agriculture about these issues.
National Tea and Coffee Development Board spokesperson Khanal stated that efforts are ongoing at all levels.
“Our nearby embassy in New Delhi is engaged in intensive discussions with India’s Ministry of Commerce,” he said.
“Diplomatic officials are raising specific points, and discussions have also taken place with Nepal’s Commerce Secretary. The ministry is actively addressing the issue with sensitivity.”
Khanal claimed that efforts are geared toward long-term solutions, not just immediate fixes.
“The issue will be resolved soon, but if laboratory testing remains the main criterion, then the testing labs in Nepal must be recognized. This has to be a permanent solution,” he stated.
“What is the point of a bilateral agreement if tests done by Nepalese labs are not accepted?”
This article’s video content is also available on our YouTube channel. For additional videos and updates, subscribe to the channel and follow us on Facebook, Instagram, and Twitter. The Nepali service is available on the radio at 8:45 PM from Monday to Friday.