Nepal’s tea industry reopens after government assurance despite India’s stricter import testing

Nepal's tea industry has resumed operations following government assurances to diplomatically resolve India's increasingly stringent import testing protocols. However, producers caution that the new measures threaten to prolong the export crisis that has paralyzed the sector.

India's Food Safety and Standards Authority (FSSAI) introduced a risk-based inspection system on June 23, mandating laboratory testing for 20 percent of imported tea consignments. This directive has exacerbated existing delays at the Indian border, leaving approximately 300,000 kilograms of processed tea stranded in India and over one million kilograms stockpiled in Nepal.

The disruptions forced nearly 99 tea factories across eastern Nepal, including those in Ilam and Jhapa, to shut down operations from mid-June. This halt affected over 50 tea estates, disrupting harvesting and leaving thousands of workers unemployed. Factory owners agreed to resume production after the Prime Minister's Office committed to urgent diplomatic and administrative actions.

"Factories across Jhapa, Ilam and the rest of eastern Nepal will resume operations from Friday," said Aditya Parajuli, president of the Nepal Tea Producers Association. "Work at the tea estates will also return to normal." He added that prolonged closures are unsustainable due to the need for rapid processing of fresh tea leaves and the livelihoods of thousands of workers.

A special task force has been formed to examine the issues affecting Nepal's tea exports and propose solutions within two weeks. Industry representatives stress the need for sustained diplomatic engagement with New Delhi to ensure uninterrupted access to India's market, Nepal's largest export destination. Nepal produces over 27,000 tonnes of tea annually.

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Factories across Jhapa, Ilam and the rest of eastern Nepal will resume operations from Friday. Work at the tea estates will also return to normal.