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Home Prime News

Global Demand for Nepali Tea and Coffee on the Rise

CEO Tab by CEO Tab
November 5, 2024
in Prime News
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Tea worth Rs 1.5 billion exported in first four months of FY 2023/24
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International demand for Nepali tea and coffee has been steadily increasing, with both sectors seeing notable growth in recent years.

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According to the National Tea and Coffee Development Board, coffee exports reached 77 metric tons during the fiscal year 2079-80 BS (2022-23), marking an increase from 72 metric tons worth NPR 96 million in the previous fiscal year. The Board is currently compiling data for the fiscal year 2080-81 BS (2023-24).

On the import side, coffee imports in fiscal year 2078-79 BS (2021-22) totaled 450 metric tons valued at NPR 320 million. However, these imports dropped significantly in the following year, with a total value of just NPR 100 million—around NPR 220 million less than the previous year.

Board Director Deepak Khanal attributes the rise in production to a favorable environment for coffee farming and the expansion of cultivation. Currently, coffee is grown on 3,659 hectares of land, with around 33,000 farmers involved in production. Commercial coffee farming now spans 43 districts, including areas such as Gulmi, Palpa, Arghakhanchi, Lalitpur, Tanahu, Kavre, Sindhupalchowk, Lamjung, Kaski, Gorkha, Syangja, Parbat, and Baglung. Despite the local market’s relatively small scale, global demand for Nepali coffee is around 14,000 metric tons.

Meanwhile, the tea sector also continues to grow. Tea exports in fiscal year 2078-79 BS reached a value of NPR 3.8 billion, with a further increase of approximately NPR 140 million in the following year. The number of tea industries in Nepal has expanded to 161, employing around 60,000 workers, according to Board official Chandra Puri.

As both industries continue to grow, the rise in international demand highlights the potential for Nepali tea and coffee to establish a stronger foothold in global markets.

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