June 17, Biratnagar – Following obstructions imposed by the Indian side on the export of Nepalese tea, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Koshi Province, has urged the government to remove these barriers. Due to hindrances by the Indian authorities, the export of Nepalese tea has been halted, leading to the closure of 53 tea factories in Ilam since June 15. Additionally, 32 tea entrepreneurs in Jhapa have announced their intention to shut down their industries beginning Thursday.
As the export difficulties have placed the tea industry in crisis, the FNCCI has called on the government to pursue high-level diplomatic efforts to reopen export channels. Rajendra Raut, President of FNCCI Koshi Province, emphasized that the government should not delay creating a favorable environment for exports to safeguard the interests of the Nepalese tea industry, farmers, and workers. “The tea industry plays a vital role in earning foreign currency, promoting tourism, and strengthening the local economy,” President Raut stated. “The new regulations imposed by the Indian side have caused a considerable quantity of processed tea to be held up at the border, resulting in increased stockpiles within factories and severe cash flow problems.” He further noted that thousands of farmers, workers, and entrepreneurs have been directly affected by these issues.
With the tea factories shutting down, more than 20,000 workers and their dependent families now face a livelihood crisis, Raut added. Approximately 10,000 hectares of land in Nepal produce around 27.4 million kilograms of tea annually. A significant portion of this, approximately 25.6 million kilograms per year, was primarily exported to India. However, disruptions in the principal market have brought the entire tea sector to the brink of collapse, he stressed.
