India’s ‘Invisible’ Barriers to Nepalese Tea Exports: Materials Stuck in Warehouses under the Pretext of Testing
Following India’s reinstatement of 100% testing requirements for Nepalese tea imports, nearly 200,000 kilograms of tea remain stuck in warehouses in Siliguri and Kolkata. Due to the complicated testing procedures imposed by Indian authorities, Nepalese tea exports have been halted at the eastern Mechi Customs for over two weeks. Tea producers from Nepal have called for diplomatic interventions via the Nepalese Embassy in India and the government to remove these prolonged non-tariff barriers.
May 21, Kathmandu – Persistent obstacles imposed by India on Nepalese tea exports have placed small-scale farmers in economic hardship. After a 21-day blockade, Nepalese tea entered the Indian market but remains trapped in warehouses in commercial hubs like Siliguri and Kolkata without reaching final buyers. Business owners report that approximately 200 tons (200,000 kilograms) of Nepalese tea are currently awaiting sale, stuck in Indian warehouses.
The export disruption has been caused by renewed non-tariff barriers placed by India. A similar regulation, enforced from April 1, had completely halted tea exports for 21 days. Subsequently, the Indian Tea Board allowed sample testing for tea destined for the Indian market, reserving full testing only for tea heading to third countries, temporarily easing exports and providing some relief to Nepalese farmers. However, after 21 days, the Tea Board revised the standards, imposing separate testing rules for tea consumed domestically and for tea exported to third countries.
Although the Food Safety and Standards Authority of India (FSSAI) indicated that no Tea Board testing would be conducted for tea intended for domestic consumption until formal clarification, customs and FSSAI have allowed random sample testing under a risk management system. The Tea Board also shortened test result turnaround times to facilitate trade, requiring reports traditionally taking at least 15 days to be uploaded online within 5 days. Yet, with India reimposing 100% mandatory testing, exporters and farmers sending second-season tea are experiencing renewed difficulties.
While tea from the hills transported to Indian warehouses has undergone sample testing, business operators report delays in receiving results, with reports outstanding for over a week. Nepal annually produces about 25,000 tons (25 million kilograms) of tea, with roughly 90% exported to India. Orthodox tea from eastern districts such as Ilam, Jhapa, Panchthar, Dhankuta, and Tehrathum reaches global markets primarily via the Indian market.
Mechi Customs officials confirmed a two-week stoppage in tea exports via the eastern border. Ishwar Kumar Humagain, Public Relations Officer at Mechi Customs, stated, “There was an expectation the previous obstacles would be resolved, but tea has still not moved from here.” He also noted the unclear status of 8 tons of tea dispatched for testing two weeks ago. The Mechi Customs is Nepal’s main gateway for tea shipments to India, Bhutan, and Bangladesh. The blockage affecting transit through India hampers Nepalese exporters.
Industry veteran Uttam Shrestha asserts the Indian Tea Board’s strategy is to impose a de facto ban on Nepalese tea to break the market. Although exports seem open, the Indian side is accused of holding tea in warehouses under various pretexts. Shrestha, former chairman of the Tea Producers Association and operator of Taragaun Tea State and Siddheshwar Tea State, explained that although trucks have cleared customs in both Nepal and India, the tea remains stranded in Indian warehouses across different cities. “Our tea is stuck in Siliguri and Kolkata warehouses,” he said. “While it clears customs, the warehouses sample tea for testing.”
He estimates between 150,000 to 200,000 kilograms of Nepalese orthodox tea are held up in Indian warehouses. The testing process is complicated and expensive, and report turnaround times can extend up to 22 days. “One test costs over 11,000 Indian Rupees, and if retesting is necessary, an additional 15,000 Rupees must be paid. Even at such high cost, passing the test is not guaranteed,” he explained. India’s restrictions negatively impact both the market and the quality of Nepalese tea.
Shrestha noted that the first season’s tea usually commanded good prices, but prolonged warehouse delays of 22-25 days degrade quality and drive down market prices. “Initially, tea would sell at higher prices, but now timing affects quality and pricing. Although second-season production has started, the first season’s tea is still awaiting decisions,” he added.
He raised concerns about the roles of the government and relevant authorities. Although the Ministry of Commerce assured resolution of the issues, no concrete actions have been observed. “The Ministry said problems would be avoided so that tea shipments wouldn’t suffer, and based on that we sent the tea, but now it remains stuck in warehouses,” he lamented. He also criticized the Nepal Tea and Coffee Development Board for limited engagement. While the Indian Tea Board remains active, Nepal has yet to play its part effectively. Shrestha stressed the necessity of a strong diplomatic approach to counteract India’s strategy, which uses testing procedures to block or discredit Nepalese tea in the Indian market.
Senior Vice President of the Nepal Tea Producers Association, Shivkumar Gupta, reported that legal customs hold has not been imposed by India but that Indian importers’ warehouses have become the site of new impediments. Previously, tea was stopped at customs, but this time, after clearing customs, stricter enforcement occurs at the warehouses. “Currently, customs poses no problem, but the rule now requires sample testing and clearance at importers’ warehouses before sale,” he explained.
This new rule scares Indian traders from purchasing Nepalese tea. Delays in test reports mean goods remain on hold and investments become risky, causing buyers to hesitate. Gupta characterized this as an ‘indirect’ blockade strategy. “The Tea Board’s requirement that tea cannot be sold until test reports arrive discourages traders from taking risks. Unable to legally stop goods at customs, they have adopted this alternate approach,” he said.
Tea business operators have demanded the government undertake diplomatic initiatives to ensure smooth exports of Nepalese tea. Frequent technical and administrative hurdles created by India risk damaging the international credibility of Nepalese tea, they warn. The private sector has requested diplomatic efforts via the Nepalese Embassy in India to lift these barriers. During his India visit, Rastriya Swatantra Party Chairperson Ravi Lamichhane received business representatives’ appeals to end recurring administrative and technical obstacles in Nepalese tea exports through embassy interventions.
