Nepal tea exporters face crisis as India tightens import rules

The Indian government's recent imposition of stringent import regulations on tea, effective May 1, has sent shockwaves through Nepal's vital tea export sector. These new Standard Operating Procedures, mandating lab testing for every consignment and requiring extensive documentation, are being framed by India as measures to safeguard its domestic industry and curb adulteration. However, for Nepali exporters, these rules represent a potential death knell for their trade.

Nepali exporters, represented by figures like Shiva Kumar Gupta of the Nepal Tea Planters Association, are vocal in their concerns. They argue that the logistical hurdles and extended clearance times, particularly at border points like Kakarvitta, will effectively halt shipments. The requirement for vehicles to remain at customs until lab reports are issued, coupled with insufficient parking, presents an immediate operational crisis. Furthermore, the added costs associated with testing and potential delays make Nepali tea uncompetitive in the Indian market.

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The new provision will completely halt tea exports from Nepal. Transport vehicles will be held at Kakarvitta customs until lab reports are issued.

Deepak Khanal, spokesperson for the National Tea and Coffee Development Board, has highlighted the issue with the Agriculture Ministry, emphasizing the serious impact on the sector if not addressed promptly. This situation is particularly galling given that just last year, India's food safety authority had recognized certificates from Nepal's National Food Authority, suggesting a previous level of mutual trust and streamlined processes. The abrupt shift to these highly restrictive measures, without apparent prior consultation or consideration for Nepal's economic reliance on tea exports, is viewed with deep suspicion and frustration.

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We have raised the issue with the Agriculture Ministry. If not addressed promptly, it will have a serious impact on the sector.