Nepal Tea Industry Hit by Lower Exports and Market Challenges
Nepal’s tea exports to India declined significantly in the 2025/26 fiscal year, resulting in a revenue loss of nearly Rs 640 million. According to the Kakarbhitta Customs Office, the country exported 13,045 metric tonnes of tea worth Rs 3.53 billion, compared with 15,311 metric tonnes valued at Rs 4.17 billion in the previous fiscal year. The decline represents a reduction of more than 2,260 metric tonnes in export volume and a year-on-year revenue loss of Rs 639.7 million.
Chief Customs Administrator Shivalal Nyaupane said tea remains the second-largest export commodity passing through the Kakarbhitta customs point after large cardamom. He attributed the decline to fluctuating prices in the Indian market, non-tariff barriers during quality inspections, and changing international demand and pricing.
India continues to be the primary market for Nepal’s CTC and orthodox tea. As a result, the decline in exports is expected to have a significant impact on tea growers, processors and exporters across the country. Industry stakeholders say the downturn highlights Nepal’s heavy dependence on a single export destination and underscores the need to diversify markets while improving quality standards to strengthen the sector’s long-term competitiveness.
