October 18: The introduction of cash subsidy program by the government for the promotion of Nepali products has positively impacted the tea export. According to a latest Trade and Export Promotion Center (TEPC) data, the export of tea has risen by 20 percent in the FY2015/16. 

In FY 2014/15, tea export totaled Rs 2.1 billion which increased by Rs 2.40 billion in FY 2015/16.  As per the TEPC, last FY saw export of 13,289 metric tonnes of tea against 11,142 metric tonnes in FY 2014/15 marking a growth of 19.26 percent. The data indicates that the rise in demand has supported the increment in export despite the stability in average price of tea in the international market. 

However, the export of tea has slowed down in FY 2014/15 compared to FY 2013/14 as per the TEPC data. In FY2014/15, 11,396 metric tonnes of tea amounting Rs 2.1 billion was exported which is less in terms of quantity and amount. “The last year’s earthquake affected the production of tea in spite of the demand in the international market,” says Gaurav Luitel, Planning Officer of the National Tea and Coffee Development Board. According to him, the non-tariff barrier imposed by different countries sometimes creates problem in the export of the Nepali tea.    

As per the Board, CTC tea comprises of 80 percent of the tea production in Nepal and orthodox tea shares the rest 20 percent. The Board views that the export is very less in terms of international market demand. “Nepali tea is very popular in international market,” mentions Luitel, adding, “If we can make improvements in both production and quality, we can export tea as per the demand.”

Tea produced in Nepal is being exported to markets including India, UK, Germany, Switzerland, Belgium, China, France, Netherland, Canada and other countries. India is the single biggest market for Nepali tea. According to official statistics, 90 percent of tea produced in the country is exported to India while 2.8 percent is shipped to Germany and remaining to other countries.