The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has called on the government to take immediate diplomatic initiatives to address the obstacles faced by Nepal’s tea exports to India following the implementation of new standards by the Indian Tea Board.
In a press statement issued on Tuesday, FNCCI said that the new Standard Operating Procedure (SOP), effective from May 1, along with the requirement for mandatory quality testing of every tea consignment, has created significant difficulties for Nepal’s tea industry.
According to the federation, the new measures have complicated the export process and posed a serious threat to the smooth operation of tea businesses.
FNCCI highlighted that Nepal’s tea sector is a major contributor to agriculture, industry, exports, and employment. The sector generates annual business worth Rs 12–14 billion and exports tea worth more than Rs 5 billion to India every year.
The federation noted that the industry provides direct employment to more than 60,000 workers and contributes approximately Rs 1 billion annually to government revenues.
Under the new Indian regulations, every tea shipment must undergo quality testing, and obtaining test reports takes 20 to 25 days. Additional requirements, including mandatory warehouse charges and provisions requiring the destruction of consignments that fail quality standards, have nearly halted tea exports, FNCCI said.
As a result, tea industries are facing severe cash-flow constraints, making it difficult to pay tea growers for green leaves, provide workers’ wages, and meet obligations such as taxes and electricity bills.
FNCCI also emphasized the need to establish an internationally accredited laboratory within Nepal to address long-term quality assurance and export-related challenges. It stated that it has repeatedly raised the issue with the government and urged concrete measures to resolve it.
Stressing that the livelihoods of thousands of tea farmers, workers, and entrepreneurs depend on the sector, the federation urged the government to treat the issue as a national priority and seek an immediate solution through diplomatic engagement with India.
It also called on the Ministry of Industry, Commerce and Supplies to hold discussions with the neighboring country to remove the barriers that have disrupted Nepal’s tea exports.
