Nepal’s tea exports surge by 52%, boosted by South Indian shortfall

KATHMANDU: Tea exports from Nepal have soared by 52 percent in the first two months of the current financial year 2024/25, signaling a robust growth driven by heightened demand from India.

According to figures from the Mechi Customs Office, Nepal exported 4,412 metric tons of tea in July and August, a significant increase from the 2,902 metric tons shipped during the same period last year.

The value of Nepal’s tea exports has also seen a sharp rise. Data shows that tea worth Rs 1.13 billion was exported in the first two months of this year, marking a 62 percent increase compared to Rs 699.3 million during the same period in the last fiscal year.

Aditya Parajuli, president of the Nepal Tea Producers Association, attributed this surge to reduced tea production in South India, which has opened up opportunities for Nepali tea in the Indian market.

“With the decrease in production in South India, we are seeing a notable rise in demand for Nepali tea. We expect exports to grow even further as the year progresses,” said Parajuli.

Despite this year’s strong start, Nepal’s overall tea exports to India in the last financial year, 2023/24, saw a slight decline. Nepal shipped 13,433 metric tons of tea, valued at Rs 3.16 billion, which represented a 7.68 percent drop from the previous year.

Tea continues to be one of Nepal’s key export commodities, with India remaining the largest buyer.

The current rise in demand offers a promising outlook for Nepal’s tea industry, especially as it aims to increase its market share in the region.