More than 50 orthodox tea producers in Nepal have closed their factories due to India’s strict quality-testing procedures, causing disruptions in tea exports. Additionally, CTC tea producers are set to shut down their factories for the same reason. The Tea Board of India’s Standard Operating Procedure, which mandates quality testing for all tea exports from Nepal, has led to delays and financial burdens for Nepali tea producers.
The new system requires waiting for test reports before tea can be sold, with failed consignments needing to be destroyed or returned. This has resulted in significant unsold tea quantities in both Nepal and India, affecting the entire production cycle and putting pressure on farmers and factory owners. The situation has led to financial strains on the tea industry and risks associated with sample failures, hindering tea exports to India.
Dipesh Dhakal, a member of the Nepal Tea Producers’ Association, highlighted the challenges faced by CTC tea producers, with Indian buyers hesitating to purchase Nepali tea due to the risks involved. The stricter quality-testing regime in India contrasts with previous practices where only selected samples were tested. The current situation has stalled tea exports and exacerbated tensions between Indian and Nepali tea growers.
