India reimposes 100% testing requirement, Nepal tea exports face fresh disruption

KATHMANDU: Nepal’s tea exports to India have once again come under pressure after Indian authorities reinstated a mandatory 100 percent laboratory testing requirement for Nepali tea shipments, reviving concerns among tea farmers, processors, and exporters in eastern Nepal.

The latest move by the Indian Tea Board has effectively reintroduced a non-tariff barrier that industry stakeholders say could significantly delay exports, increase costs, and disrupt supply chains at a critical period of the tea harvesting season.

The development comes just weeks after a previous dispute over testing requirements had temporarily halted tea exports through the Kakarbhitta border point for 21 days. Earlier, India had announced that all tea exported from Nepal to India would be subject to mandatory laboratory testing from May 1. The decision triggered strong objections from Nepali exporters and industry associations, who argued that the measure created unnecessary trade obstacles.

Following diplomatic and business-level discussions, Indian authorities had partially revised the arrangement. Under the amended system, tea intended for sale within the Indian market required only sample-based testing, while tea destined for re-export to third countries was subject to full laboratory examination.

After that revision, tea containers stranded at Kakarbhitta gradually resumed movement. Samples collected by the Panitanki customs office were sent for testing, and exports were allowed to proceed on the basis of temporary certification while laboratory procedures were completed.

However, the situation has now become uncertain again after Indian authorities reportedly reinstated the requirement for comprehensive testing of Nepali tea consignments.

Exporters Fear Renewed Delays

Tea producers and exporters say the reintroduction of full testing requirements threatens to undo progress made after the earlier disruption. Businesses preparing for the second phase of tea exports this season now face renewed uncertainty regarding shipment schedules and market access.

Industry representatives warn that the problem extends beyond the policy itself. Food testing laboratories in Kolkata are reportedly facing shortages of technical personnel, resulting in slower processing of tea samples.

The lack of adequate laboratory capacity could lead to longer clearance times, causing tea consignments to remain in warehouses for extended periods and increasing storage and logistics costs. Since tea is a time-sensitive export commodity, prolonged delays can also affect product quality and delivery commitments to international buyers.

Major Risk for Nepal’s Tea Economy

Nepal’s tea industry remains heavily dependent on the Indian market and transit network.

According to government data, Nepal produces approximately 25 million kilograms (2.5 crore kilograms) of tea annually. Around 90 percent of total production consists of orthodox tea, which is primarily export-oriented.

Of Nepal’s total tea exports, an estimated 80 to 90 percent is shipped to India. Much of the orthodox tea produced in the eastern hill districts of Ilam, Jhapa, Panchthar, Dhankuta, and Tehrathum enters India before being re-exported to international destinations including Europe and the United States.

This dependence makes Nepal particularly vulnerable to changes in Indian import procedures and regulatory requirements.

According to the National Tea and Coffee Development Board, more than 160,000 families in Nepal are directly or indirectly involved in tea cultivation, processing, transportation, and trade.

Calls for Diplomatic Intervention

Tea entrepreneurs and exporters have accused Indian authorities of repeatedly introducing new testing-related conditions that function as non-tariff barriers to trade. They argue that frequent regulatory changes create uncertainty for exporters and undermine the competitiveness of Nepali tea in regional and global markets.

Industry stakeholders are urging the Government of Nepal to engage with Indian counterparts through diplomatic and trade channels to seek a long-term solution. They contend that delays created in the name of testing not only affect export earnings but also threaten Nepal’s reputation as a reliable supplier in international tea markets.

With tea ranking among Nepal’s most important cash crops and export commodities, continued disruptions could have far-reaching consequences for rural livelihoods, foreign exchange earnings, agricultural exports, and the broader economy.