New Import Regulations on Indian Tea Leaves Put Nepali Exporters in Crisis

Kathmandu: India’s new import regulations on tea leaves have created difficulties for Nepali exporters. The Nepal Tea Producers Association has expressed its concerns to Prime Minister K.P. Sharma Oli, who has assured them that the Nepalese government will discuss the issue with the Indian government.

India recently implemented new provisions requiring all foreign tea imports to go through an auction process. According to Aditya Parajuli, president of the Nepal Tea Producers Association, this decision has severely impacted Nepalese tea exports, leading to a decline in the volume of tea reaching the Indian market.

Parajuli stated that a memorandum highlighting these concerns was submitted to Prime Minister Oli. In response, Oli assured them that diplomatic efforts would be made to resolve the issue. Nepal plans to present its case to the Indian government through the Indian Embassy soon.

Nepal exports tea worth approximately ₹600 crore annually. Every year, 1.2 crore kilograms of CTC tea and 50 lakh kilograms of Orthodox tea are exported to India. Notably, 80% of Nepal’s total tea production is exported to India.

Until now, Nepalese tea exports to India were subject to a 40% customs duty, as agreed upon under the 2009 Nepal-India Free Trade Agreement. However, the new Indian import regulations have complicated the process, putting Nepali tea exporters in a challenging position.