India eases tea import rules again, Bringing fresh relief to Nepal’s tea exporters

KATHMANDU: India has once again relaxed its tea import procedures, offering fresh hope to Nepal’s tea industry after weeks of export disruptions caused by stringent laboratory testing requirements.

The Indian Food Safety and Standards Authority (FSSAI) has amended its inspection policy by directing its subordinate offices to conduct laboratory testing on only 20 percent of imported tea consignments through a risk-based random sampling system, replacing the earlier practice of testing every shipment.

According to an urgent circular issued by FSSAI on June 23, the revised system came into immediate effect following a decision made at a meeting chaired by India’s Commerce Secretary on June 16. The authority said the new risk-based inspection mechanism would apply uniformly at all Indian entry points, regardless of whether FSSAI officials are stationed there.

The decision marks the second time in less than two months that India has softened its tea import procedures following concerns raised by exporters and industry stakeholders.

Previously, Indian authorities had been collecting samples from every truck carrying tea imported from Nepal and withholding sales clearance until laboratory reports were completed. The lengthy testing process frequently delayed consignments for several weeks, increasing storage costs, affecting tea quality, and disrupting exports.

Nepalese tea exporters have welcomed the latest decision, describing it as a positive step toward restoring smoother cross-border trade.

Nepal Tea Producers Association President Aditya Parajuli said the move to inspect only 20 percent of consignments represents a significant improvement over the previous requirement of testing every truck.

He said that if only one out of every five consignments is selected for testing, exporters will be able to move shipments more efficiently and reduce delays at the border.

However, industry representatives remain cautiously optimistic, saying the practical implementation by the Tea Board of India will determine whether the revised policy provides the expected relief.

The earlier relaxation announced by Indian authorities on May 19 had initially raised hopes after the Tea Board of India revised its Standard Operating Procedure (SOP). Exports resumed after a 19-day interruption, but exporters later reported that Indian officials continued collecting samples from every truck at border checkpoints and warehouses in Kolkata, resulting in persistent delays.

The prolonged laboratory testing prompted tea factories in Ilam to suspend operations from June 15, while factories in Jhapa followed from June 18 as inventories accumulated and exports stalled. Production resumed only after Nepal’s Prime Minister’s Office assured tea entrepreneurs that diplomatic efforts would be made to resolve the issue with Indian authorities.

Industry officials said nearly 300,000 kilograms of Nepali tea had remained stranded at warehouses in Kolkata over the past two weeks while awaiting laboratory clearance.

Senior Vice President of the Nepal Tea Producers Association Shiva Kumar Gupta said the latest FSSAI directive indicates that sampling procedures will now be completed at border entry points instead of warehouses, potentially eliminating another major source of delay.

He said the adoption of a risk-based inspection system should reduce clearance time, speed up imports into India, and ease the export bottlenecks that have affected Nepal’s tea sector in recent weeks.

Despite the positive development, exporters say they will closely monitor India’s implementation of the new policy.

Gupta said tea exporters plan to dispatch fresh consignments on Monday, which will serve as the first practical test of whether Indian authorities fully implement the revised inspection system.

The latest FSSAI notification does not specifically mention Nepal. Instead, it applies uniformly to all tea imported into India for domestic consumption under the revised risk-based testing framework.

India remains Nepal’s largest international tea market. Approximately 90 percent of Nepal’s orthodox tea exports and nearly half of its CTC tea production are sold in the Indian market, making any regulatory changes highly significant for the country’s tea industry.

Nepal currently has around 120 large and small tea processing factories, along with more than 100 small and medium-sized tea enterprises. The sector provides direct and indirect employment to an estimated 50,000 to 60,000 farmers, workers, and entrepreneurs.

According to industry data, Nepal exported CTC and orthodox tea worth approximately Rs. 4.75 billion during the previous fiscal year. Tea cultivation currently covers 20,602 hectares across the country, with exports to India remaining the backbone of Nepal’s tea economy.

While the latest policy revision has improved industry sentiment, exporters say the true impact will depend on whether Indian customs and regulatory agencies uniformly implement the new risk-based inspection system at all border points in the coming weeks.