Tea exports decline through eastern border

BHADRAPUR: Nepali tea exports to India through the eastern border point at Kakadbhitta have declined.

According to the Kakadbhitta Customs Office, both the volume and value of tea exports decreased in the last fiscal year 2082/83 compared to the previous fiscal year.

Customs statistics show that 13,450 metric tons of tea worth Rs 3.52 billion were exported in fiscal year 2082/83, whereas 15,311 metric tons worth Rs 4.16 billion were exported in fiscal year 2081/82. Along with the decline in export volume, export earnings also fell by Rs 639.69 million.

Chief Customs Administrator Shivlal Neupane said tea is the second-largest export item through this border after cardamom. Since India is the main market for Nepali tea, exports have been affected by price fluctuations in the Indian market, non-tariff barriers related to quality testing, and changes in production and pricing in line with international market demand.

A large portion of Nepal’s CTC and orthodox tea is exported to India through the Kakadbhitta border. The decline in exports is likely to affect tea farmers, industrialists, and the country’s overall foreign trade balance.