Ilam, Nepal - As Nepali tea exports to India continue to face recurring disruptions, tea farmers and entrepreneurs have increasingly identified third-country markets as the most viable long-term alternative for the country's tea industry.
Industry stakeholders argue that repeated restrictions imposed on Nepali tea exports by India have effectively hindered trade, prompting the need to diversify export destinations. They believe the current crisis should be viewed not merely as a challenge but as an opportunity to reduce Nepal’s dependence on a single market.
Grishma Subba, proprietor of Jasbire Tea Industry in Ilam, said Nepal must break away from the long-held perception that India will remain its primary tea market indefinitely. According to him, recurring export obstacles highlight the urgency of developing sustainable and diversified international markets for Nepali tea.
Subba, whose company exports tea to several countries including China, Germany, and Russia, emphasized that a government-to-government (G2G) trade agreement with China could provide a significant breakthrough. He noted that Nepali tea enjoys growing popularity among Chinese consumers and could gain wider access to global markets through China. However, the absence of a formal trade framework has limited opportunities, forcing exporters to rely on small-scale courier shipments.
Similarly, Uday Chapagain, owner of Sundarpani Tea Estate in Suryodaya Municipality, Ilam, described third-country exports as the future of Nepal’s tea industry. Chapagain, who has been exporting tea internationally since 2009, expressed concerns over recent challenges faced by Nepali tea entering the Indian market despite holding internationally recognized organic certifications.
Having recently returned from tea-related programs in Germany, Belgium, Luxembourg, the Netherlands, and the United Kingdom, Chapagain urged the Government of Nepal to strengthen economic diplomacy and facilitate market access in countries beyond South Asia. He identified Turkey, Pakistan, Iran, and Gulf nations as potential destinations for Nepali tea exports.
Industry representatives argue that Nepali tea possesses strong quality standards and competitive advantages in international markets. They have called on the government to actively support exporters through diplomatic engagement, trade negotiations, and market promotion initiatives.
The Central Tea Cooperative Federation has also appealed to the government to ensure market management and create an environment that allows closed tea factories to resume operations. The federation warned that factory closures during the peak harvesting season have placed thousands of smallholder tea farmers at risk, threatening both livelihoods and agricultural productivity.
The federation further recommended establishing a tea auction center within Nepal and expanding access to international markets to strengthen the industry's resilience.
Indra Adhikari, a representative of the National Tea and Coffee Development Board, stressed the urgency of resolving the crisis. He noted that tea leaves require frequent harvesting throughout the year, and even short delays can significantly affect quality.
Despite ongoing discussions between industry representatives and government officials, tea farmers and entrepreneurs say they remain uncertain about the government's immediate plans. Stakeholders recently submitted recommendations to the Prime Minister’s Secretariat outlining possible solutions to the export crisis.
With tea factories reportedly closed since the beginning of the current harvesting period, thousands of kilograms of green tea leaves risk being wasted in farmers’ fields, raising concerns about substantial economic losses if timely action is not taken.
Industry leaders continue to urge the government to recognize tea as a strategic national asset and prioritize policies that ensure sustainable growth, market diversification, and long-term competitiveness for Nepal’s tea sector.
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