Tea exports to India decline through Kakarvitta point

Exports of Nepali tea to India via the Kakarvitta border point in Jhapa have seen a significant decline over the past fiscal year. Data from the Kakarvitta Customs Office reveals a drop in both the quantity and monetary value of tea shipped across the eastern border.

In the fiscal year 2082/83 BS, Nepal exported 13,045 metric tons of tea valued at Rs 3.53 billion to India. This marks a decrease from the previous fiscal year, 2081/82 BS, when 15,311 metric tons worth Rs 4.17 billion were exported. The reduction in export volume led to a shortfall of Rs 639.69 million in tea export earnings.

According to Shivlal Neupane, Chief Customs Administrator, tea is Nepal's second-largest export commodity through Kakarvitta, after cardamom. He cited several reasons for the downturn in exports, primarily the Indian market's price fluctuations. Additionally, non-tariff barriers related to quality testing and shifts in production and pricing influenced by global market demand have impacted trade.

A substantial portion of both CTC and orthodox tea produced in Nepal is destined for the Indian market through this key border crossing. The decrease in exports is anticipated to negatively affect tea farmers, industrialists, and suppliers, potentially widening Nepal's existing trade deficit.

“

Since India is the primary market for Nepali tea, exports have been affected by price fluctuations in the Indian market, non-tariff barriers related to quality testing, and changes in production and pricing driven by international market demand.