Tea Industry announces shutdown over export crisis
Tea entrepreneurs say that the recently introduced Standard Operating Procedure (SOP) has disrupted the export of Nepali tea to India, the sector’s key market.
KATHMANDU: Nepal’s tea industry is set to face an indefinite shutdown starting from Asar 4, as industry operators raise alarm over a deepening crisis triggered by new regulations imposed by the Indian Tea Board.
Tea entrepreneurs say that the recently introduced Standard Operating Procedure (SOP) has disrupted the export of Nepali tea to India, the sector’s key market.
As a result, tea factories and plantations across the country will halt operations indefinitely.
According to the Nepal Tea Producers Association, the sector’s annual turnover ranges between Rs 12–14 billion, with exports to India alone accounting for around Rs 5 billion.
Association General Secretary Shukra Dahal stated that the restrictions have severely impacted trade flows and threatened the sustainability of the industry.
The Jhapa chapter of the association, addressing a press conference in Bhadrapur, formally announced the shutdown decision, warning that both tea processing factories and tea gardens will cease operations from tomorrow.
Industry representatives have urged the government to take urgent diplomatic and trade initiatives to open alternative export markets such as Bangladesh and Pakistan to mitigate losses.
The tea sector currently provides employment to around 60,000 workers and contributes approximately Rs 1 billion annually in government revenue, making it a significant pillar of Nepal’s agro-industrial economy.
