Trouble brewing for Nepali tea industry as exports to India remain halted

Nepal's vital tea industry faces a critical juncture as exports to India remain stalled due to new import regulations. All 83 tea factories in the eastern districts of Ilam and Jhapa ceased operations in protest, highlighting the severity of the situation. Producers argue that these recurring trade barriers, often influenced by Indian growers, severely hamper their access to the crucial Indian market.

Aditya Parajuli, president of the Nepal Tea Producers Association, stated that factory shutdowns were a dramatic measure to bring attention to their plight. "We are scheduled to meet officials from the ministries concerned," Parajuli said. "In the past too, we submitted memorandums explaining our problems, but the issues remained unaddressed." This sentiment underscores a history of unresolved grievances between the two nations regarding trade.

The latest disruption began in mid-April with the Tea Board of India introducing compulsory laboratory testing for all consignments. While a temporary relaxation allowed random sampling, a new inspection layer requiring samples from every bag at importers' warehouses in Kolkata has effectively halted sales. Weeks have passed without laboratory reports, leaving approximately 1,000 tons of Nepali tea stranded within Nepal and another 300 tons stuck in India. Producers warn that prolonged storage risks compromising quality and leading to substantial financial losses, threatening the livelihoods of thousands of farmers and workers.

In response, the Nepali government has formed an inter-agency task force, including representatives from the ministries of agriculture and industry, to tackle the issue. The task force is set to convene soon, but the long-standing nature of the dispute and its diplomatic implications suggest a complex path forward for the beleaguered tea industry.

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We have come to Kathmandu after shutting down all tea factories. We are scheduled to meet officials from the ministries concerned. In the past too, we submitted memorandums explaining our problems, but the issues remained unaddressed.