Nepal: India’s import rules compel tea producers to shut factories

KATHMANDU: More than four dozen orthodox tea producers in Nepal have shut down their factories starting Monday, as India's stringent quality-testing procedures have disrupted the smooth export of one of Nepal's key export commodities.

Producers of CTC tea have also announced that they will shut down their factories starting Wednesday for the same reason.

More than 90 per cent of Nepal's orthodox tea is exported to India, while around 60 per cent of the CTC tea produced in the country is sold in the Indian market, according to associations representing tea factory owners.

The Standard Operating Procedure (SOP) implemented by the Tea Board of India on May 1 has made quality testing mandatory for every consignment of tea exported from Nepal.

Nepal tea factory owners say the new system has significantly increased business risks, as it takes more than two weeks to receive test reports, tea cannot be sold until the reports are issued, and consignments that fail the test must either be destroyed or returned. (IANS)

Also Read: India-Bangladesh-Nepal trilateral cooperation holds huge potential in energy, trade and connectivity: Nepali Expert