Gulmi: The coffee capital of Nepal – A century-old legacy reaching the global market as specialty coffee

Puspalal Pandey

KATHMANDU: As the winter chill intensifies, your coffee intake is likely increasing. And with every sip of coffee, a good ‘coffee-guff’ (conversation) is bound to happen. In any discussion about Nepalese coffee, Gulmi is the undisputed star. Just as ordering tea in Nepal inevitably invokes the name Ilam, the conversation around coffee must include its historical heartland—Gulmi. This is because the history of coffee cultivation in Nepal began in Gulmi, over a century ago.

It is widely believed that Hira Giri, a local resident of Aapchaur, Gulmi, pioneered coffee cultivation in Nepal around 1913 AD (B.S. 1970) by planting the first coffee sapling. Giri brought the coffee seeds from Burma. This initial effort by the Pioneer of Nepali Coffee has blossomed into a national industry, thriving in the cool, moist climates of over forty hilly districts, including Kavre, Lamjung, Syangja, Arghakhanchi, and Palpa.

Coffee gained recognition as a significant cash crop in Nepal following the introduction of the Tea and Coffee Development Program in 1992 and the National Coffee Policy in 2001. Gulmi’s coffee, which is strictly organic, hand-picked, and possesses a distinct flavor profile, is now being exported to high-value markets in Japan, Europe, and the United States.

With the rise of coffee cafés, the growing attraction of young farmers to cultivation, and the development of local private roasters, Gulmi’s coffee is successfully establishing an image as a Specialty Coffee in the International Coffee Market. It is increasingly viewed as an emerging opportunity for local income generation, employment, and the diversification of hilly agricultural practices.

Born in the Lap of the Hills: The History of Nepali Coffee

The question of how coffee cultivation began in Nepal often sparks curiosity. Many believe it was introduced by foreigners, but the truth lies in the determined effort of a simple local farmer: Hira Giri of Aapchaur, Gulmi.

Around 1913, Giri traveled to Burma. There, he saw coffee plants and learned about the coffee cherry and its captivating taste. Upon his return to Nepal, he carried a few seeds in his pocket. Those very seeds have now spread across 40 districts, transforming Nepal’s agricultural landscape.

At the time, no one knew that the few seeds he brought back would become a potential pillar of Nepal’s agricultural economy in the future. The unique soil, climate, and harmonious balance of sun and shade in Aapchaur provided an ideal environment for the coffee plants to thrive. The saplings Giri planted have matured into a source of foreign exchange earnings for the nation.

Gulmi Coffee: Organic Certification and Global Market Access

In the hilly district of Gulmi, approximately 4,000 farmers are actively engaged in coffee production. According to Yubaraj Acharya, Manager of the District Cooperative Union, coffee is cultivated across 335 hectares, yielding an annual production of around 28 metric tons of green coffee.

Acharya notes that a mature coffee plant in the district produces about 20 kilograms of cherry, and plants typically start bearing fruit three years after planting.

“Planting coffee is a game of patience,” says Prem Aryal, a coffee farmer from Madane. “The tree yields its first fruit only three years after planting. After that, the cycle of fruiting begins, requiring daily care, soil monitoring, and water management. With good care, a single plant can bear fruit for up to 50 years.”

Gulmi’s coffee is not just a commodity; it is a Certified Organic product. The District Cooperative Union Limited has been involved in the coffee business since 1997 and has been exporting Gulmi coffee to Japan since 2000. Acharya asserts that this was the first certified organic coffee produced and exported from Nepal.

The organic nature of the coffee—cultivated without chemical fertilizers or pesticides—ensures superior taste, quality, and a competitive advantage in the highly sought-after Organic Coffee Market globally.

Export Revenue and Economic Upliftment

Last year, 7,000 kg of processed coffee from Gulmi was exported abroad, with 3,000 kg destined for Japan alone. France, the USA, and South Korea are also reliable markets for Gulmi’s distinctive coffee.

Sheshkant Gautam, a local coffee entrepreneur, mentions that despite the foreign demand exceeding 12,000 kg, they have been unable to meet the supply requirements. However, 12 metric tons of coffee were successfully sold domestically.

Gautam anticipates a surge in these figures this year, emphasizing that “This statistic is not merely a measure of trade; it is proof of a journey from the hills of Gulmi to tables across the world.”

The coffee industry has profoundly impacted Gulmi’s economy and social structure, providing farmers with a stable income source. The cooperative structure connects farmers to the market via a network of production, processing, and export, generating employment and fostering self-reliance in rural communities.

Gautam reports that the local coffee sector generates an annual revenue of NPR 33.36 million for the district. Farmers involved in cultivation and collection earn up to NPR 600,000 annually, while those selling only coffee cherry earn up to NPR 300,000.

Challenges and Opportunities for Sustainable Coffee Development

Despite the great potential, Gulmi’s coffee industry faces hurdles. Annual production stands at only 28 tons, with just 15 tons of processed coffee available. While Global Demand is soaring, processing and distribution capacity remains limited. Furthermore, improved technology and investment are essential to enhance access to the highly competitive international arena.

Key Challenges (Challenges in Nepali Coffee):

Gulmi’s coffee is transitioning its century-old legacy into a new phase of opportunity, aiming to secure a distinct identity for Nepal’s agriculture in the international Export Market.