Tea traders call for export resolution

Kokila Dhakal / Ilam, June 21: More than 80 per cent of Nepali tea is exported to the Indian market. But recently implemented quality testing measures by the Tea Board of India has brought the export of Nepali tea to a standstill. Tea industries have been shut for a week due to an inability to export, while there is a significant loss of freshly plucked green tea leaves.

And no resolution is on the horizon yet. Since Thursday, more than 200,000 kilograms of green leaves have reportedly been ready to harvest daily, causing losses to farmers.

Tea entrepreneurs say that even a month after samples of more than 200,000 kilograms of processed tea stored in Indian warehouses were taken for testing following India’s Tea Board tightening import regulations, the Indian side has not provided any laboratory test report.

“Today, it has been a month since my tea sample was taken, but I still haven’t received the report. We still have to pay warehouse rent for the stored tea, and we have no idea what kind of report will come,” said tea entrepreneur Gyani Limbu. “If the report is good, we will receive payment for the tea sold. Otherwise, it will have to be destroyed there. It cannot be brought back to Nepal. Even if we try to bring it back, we have to pay 40 per cent customs duty. Additional money is also required for retesting.”

Limbu added that each sample test currently costs around INR 13,500.

Following the inability to export tea, 79 tea industries in Ilam and 30 in Jhapa remain closed. Earlier, 53 tea factories in Ilam had shut down from June 15, with additional closures occurring from Thursday. The TBI implemented a Standard Operating Procedure (SOP) from May 1. After this regulation came into effect, Nepali processed tea has been stuck in warehouses in Kolkata and Siliguri.

Tea entrepreneurs, who have repeatedly drawn the government’s attention to the export crisis, say the government has failed to take effective steps toward a solution. They are now demanding that, since the government has not addressed the issue, industries should remain closed until a smooth export environment is ensured.

Entrepreneurs who have repeatedly met ministers and visited government offices say they are frustrated by the lack of responsible action from the government regarding the continuously accumulating tea stock.

On Thursday, tea entrepreneurs held discussions with the foreign minister, foreign secretary, and the secretary of the Ministry of Industry. However, they only received assurances that the government is working on the issue.

Mahesh Aryal, a member of the Suryaodaya Orthodox Tea Producers Association who participated in the meeting, said the ministers and secretaries informed them that discussions were ongoing with the Indian Embassy and the Indian Consulate, and that resolving the issue would take some time.

“We also explained the reasons behind the restrictions on the tea trade, including how tea certified organic and exported to Germany was questioned by India, and how repeated barriers have been created for Nepali agricultural products such as ginger and milk. But we are not very confident that the tea problem will be resolved immediately,” Aryal said.

He added that even though the India-related issue may not be resolved quickly, the government appears largely unaware of the tea already harvested and the industries that have remained closed for days. After the meeting with ministers and secretaries, Aryal returned to Ilam, saying the government had not even instructed industries to reopen.

“There was no discussion about the closed industries. If the government had at least said that industries should operate even if exports are halted, and that it would support farmers’ payments through loans or other means, we would have continued operations,” Aryal said. “We are not closing industries out of choice during the peak season. The main concern is how to pay farmers for green leaves if processed tea cannot be sold.”

The meeting with ministers and ministry officials was attended by Aryal, along with Nepal Tea Producers Association President Aditya Parajuli, tea entrepreneur Kamal Mainali, and representatives of the Federation of Nepalese Chambers of Commerce and Industry.

Meanwhile, apart from responses to questions raised in parliament, the government has not provided any clear information to farmers or tea entrepreneurs about ongoing discussions with India. Farmers say they have no option but to watch the daily accumulation of green leaves. After the closure of factories, farmers who have leased land for tea cultivation are facing additional difficulties, said tea entrepreneur Sharad Subba.

Following the export disruption and closure of industries, the FNCCI, Koshi Province, has also issued a statement expressing concern. It said that farmers, workers, and tea entrepreneurs are all affected, and urged the Government of Nepal to take immediate high-level diplomatic initiative to resolve the issue.