Govt. serious about resolving tea export barriers, says FM Khanal

Kathmandu, June 19:  

Minister for Foreign Affairs Shishir Khanal said that the government is seriously concerned about the obstacles emerged in Nepal’s tea exports and that diplomatic dialogue is ongoing with the Indian side on the matter.

“We have already initiated discussions with Indian authorities to resolve the problems seen in Nepal’s tea exports. Concrete diplomatic efforts are being made to find a practical solution to the issue,” he said with the delegation of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) at the Ministry of Foreign Affairs (MoFA) on Thursday.

According to information received from the Indian side, a resolution is expected soon, he said while noting that discussions are being held with the Indian side for long-term solutions to similar problems affecting the export of tea and other goods.

The FNCCI delegation, led by its president Anjan Shrestha, had urged FM Khanal to take diplomatic initiatives to resolve the existing barriers and complexities in tea exports to India. It drew the attention of the minister to the difficulties faced by Nepal’s tea industry due to new arrangements introduced by the Indian Tea Board.

The FNCCI, in a statement, said on Friday that the recently issued Standard Operating Procedure (SOP) by the Tea Board of India has created further complications for Nepal’s tea exports. It stressed that there are no quality issues with Nepali tea and called for the matter to be raised strongly in bilateral trade mechanisms with the Indian side.

Shrestha said that as the tea sector, which has an annual turnover of around Rs. 12 billion to 14 billion, is in crisis, it would affect the wider economy and the livelihoods of millions. He urged the minister to resolve the issue as soon as possible.

The tensions began with TBI implementing mandatory laboratory testing of Nepal’s all tea consignments from May 1 this year. For the first three weeks, Indian authorities conducted random sampling, and the situation remained relaxed.

But after that, authorities in India collected samples of each consignment and sent them for testing, but no lab reports were issued, leaving the product stranded in Kolkata.

Exhibiting protests, 83 tea factories in Ilam and Jhapa halted operations on Thursday. Likewise, a delegation of the Nepal Tea Producers Association came to Kathmandu to find a solution with the government. More than 1,300 tonnes of tea produced in Nepal is stuck in the warehouses in Nepal and India.

According to the Association, this is a recurring problem and needs to be resolved once and for all.

The FNCCI also emphasised the need to establish an internationally accredited laboratory in Nepal for long-term solutions.

Deputy leader of the Rastriya Swatantra Party parliamentary party Ganesh Parajuli, and Chair of the Industry Committee at the Parliament Rahbar Ansari, who were present on the occasion, said that both short-term and long-term solutions should be sought for such problems.

Likewise, Commerce Secretary Krishna Bahadur Rawat said that the Ministry of Industry, Commerce and Supplies is also engaging through its channels to facilitate the process and expressed optimism that a positive outcome would be reached soon.

 

60,000 workers affected

According to the Nepal Freight Forwarders Association (NEFFA), with around 120 tea industries nationwide, thousands of farmers, and 50,000 to 60,000 workers directly dependent on the sector, the disruption has negatively impacted Nepal’s export trade, foreign currency earnings, and the overall economy.

Statistics from the National Tea and Coffee Development Board showed that Nepal produced 26,983 tonnes of tea, including orthodox, green tea, and other varieties in FY 2024/25.

Expressing serious concern over the recent complications in tea exports, one of Nepal’s key export commodities, and the procedural barriers seen in the Indian market, it said the situation has led to the closure of tea industries, particularly in eastern Nepal, and affected hundreds of tea gardens.

“Processed tea exported from Nepal to India has been held in warehouses for a long time on the pretext of laboratory testing and various technical procedures, disrupting production, distribution, and the entire export chain of the Nepali tea industry,” NEFFA said in a statement on Friday.

The Association noted that a significant share of Nepal’s total tea exports depends on the Indian market, and such barriers have adversely affected not only exporters and entrepreneurs but also the broader economy.

It urged the government to prioritise the issue and initiate immediate diplomatic efforts, including high-level dialogue with relevant Indian authorities, to remove procedural and technical barriers as soon as possible, ensuring smooth, simple, and uninterrupted trade.

Published in The Rising Nepal daily on 20 June 2026.