Nepal municipality urges India to ease tea export hurdles amid new inspections

Suryodaya Municipality in Ilam is pressing Nepal's Ministry of Foreign Affairs to intervene diplomatically with India over persistent obstacles hindering Nepali tea exports. The municipality highlighted that new procedures imposed by the Tea Board of India have once again disrupted the flow of tea into the crucial Indian market.

According to the municipality's acting mayor, Durga Kumar Baral, exports were previously halted for 21 days in April due to a new Standard Operating Procedure mandating laboratory testing for every truckload. While testing requirements were relaxed in late May to allow random sampling, a new inspection layer has now been introduced. This requires samples to be collected from every bag of Nepali tea at the importer's warehouse in Kolkata for laboratory testing.

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Nepali tea exports have once again been disrupted due to procedures imposed by the Tea Board of India.

With no laboratory reports issued for over a week, sales and distribution have ground to a halt. Approximately 50,000 kilograms of Nepali tea are currently stuck in Indian warehouses, raising concerns about quality degradation and substantial financial losses. The municipality stressed that such non-tariff barriers pose a severe threat to Nepal's tea industry, which is a major cash crop and a significant source of foreign currency. It could also disrupt the livelihoods of thousands of farmers and workers.

Nepal exports nearly 90 percent of its orthodox tea to India, making the nation highly dependent on its southern neighbor. The recurring testing issues are a major concern for Nepali exporters, despite recent progress in bilateral recognition of food testing certificates. This fiscal year, tea exports have already declined, with exports worth Rs3.35 billion in the first 10 months, down from Rs3.97 billion in the same period last year. The municipality is calling for urgent high-level diplomatic engagement to resolve the issue and ensure exports resume under previously agreed arrangements.

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such non-tariff barriers could severely damage Nepal’s tea industry, disrupt the livelihoods of thousands of farmers and workers, and negatively impact the national economy.