Tea Industry Faces Crisis Amidst Foreign Exchange Targets

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Ilam Tea Garden Farm in Kenya, Nepal
Ilam Tea Garden Farm in Kenya, Nepal (File Photo)

In a startling revelation, stakeholders in Nepal’s tea industry, the second-largest foreign exchange earner after cardamom, have sounded alarms over an impending crisis. Concerns have been raised just as the National Tea and Coffee Development Board (NTCDB) sets ambitious targets to double foreign currency earnings in the current fiscal year 2080-81 compared to the previous one.

Tea farmer Harka Tamang expressed dismay, highlighting that the government’s failure to categorize tea as an agricultural product subjects it to industrial electricity tariffs, adversely affecting irrigation practices. Adding to the woes, the absence of a dedicated auction market has become a significant impediment, hindering access to international markets.

Bhupal Sapkota, Central Vice President of All Nepal Trade Union, pointed fingers at the NTCDB, accusing it of inadequately addressing the concerns of tea industrialists, businessmen, farmers, and workers. Meanwhile, Deepak Tamang, Central President of Nepal Tea Plantation Workers’ Union, criticized the government’s perceived apathy toward resolving issues in the tea sector. He lamented the lack of coordination in implementing laws, with some plantation workers reportedly not receiving wages as stipulated by the Labour Act.

In response to these grievances, Executive Director of the Board, Bishnu Prasad Bhattarai, has assured stakeholders that concerted efforts will be made to address the existing problems within the tea sector. He pledged to play an effective role in resolving the issues raised by stakeholders.

According to board statistics, the country generated Rs 3.80 billion in foreign exchange through tea exports last fiscal year. Key markets for Nepali tea include India, China, Sri Lanka, Russia, and the Netherlands. With 99 percent of the 20,237 hectares of tea plantations located in the Koshi province, the industry encompasses 30 orthodox tea industries and 38 CTC tea industries, providing employment for around 70,000 people. The unfolding crisis poses a significant threat to Nepal’s tea sector and warrants urgent attention from relevant authorities.