Tea Industry Crisis: Stakeholders Blame Poor Government Policies

In a worrisome turn of events, stakeholders in Nepal’s tea industry have raised alarms over an impending crisis that could significantly impact the country’s largest foreign exchange earner after cardamom. The concerns come at a time when the National Tea and Coffee Development Board (NTCDB) has set ambitious targets to double foreign currency generation in the fiscal year 2023/24 compared to the previous year.

Tea farmers, such as Harka Tamang, are voicing their grievances, asserting that the government’s failure to classify tea as an agricultural product has resulted in detrimental consequences. Tamang highlighted the impact of imposed electricity tariffs on the industry, adversely affecting plantations. He also lamented the absence of an auction market, which is hindering access to the international tea market.

Bhupal Sapkota, a representative of the All Nepal Trade Union, placed blame on the NTCDB, accusing it of inefficiency in addressing the issues faced by tea industrialists, businessmen, farmers, and workers. Sapkota emphasized the urgent need for the board to play a more effective role in resolving industry challenges.

Deepak Tamang from the Nepal Tea Plantation Workers’ Union expressed dissatisfaction with the government’s response, citing apathy in addressing crucial issues within the tea sector. Tamang claimed that the NTCDB has not adequately coordinated the implementation of labor laws, resulting in workers in certain plantations not receiving wages as stipulated by the Labour Act.

In response to these concerns, Bishnu Prasad Bhattarai, the Executive Director of the NTCDB, has pledged to take effective measures to address the challenges faced by the tea sector. He assured stakeholders that the board is committed to responding comprehensively to the issues raised.

According to data from the NTCDB, Nepal earned Rs 3.80 billion through tea exports in the last fiscal year. The country exports tea to key markets, including India, China, Sri Lanka, Russia, and the Netherlands. Nepal’s tea industry spans 20,237 hectares of plantations, with a staggering 99 percent of production concentrated in the Koshi province. The sector comprises 30 orthodox tea factories and 38 CTC tea factories, collectively employing 70,000 individuals. As the crisis unfolds, the industry awaits decisive actions to safeguard its future and preserve its vital contribution to the nation’s economy.