PMO assurance revives hope in tea sector, Eastern Nepal’s tea factories reopen after 10-day shutdown

KATHMANDU: Tea factories across eastern Nepal have resumed operations after a 10-day shutdown following assurances from the Prime Minister’s Office (PMO) that the government will take diplomatic and policy initiatives to address the ongoing crisis in Nepal’s tea exports.

The factories, which had remained closed since Asar 1 (June 15), restarted production on Thursday after discussions between tea industry representatives and government officials. The shutdown had been triggered by disruptions in exports resulting from new standards imposed by India’s tea regulatory authorities.

The Nepal Tea Producers Association said the decision to reopen factories was taken in response to the government’s commitment to seek a solution through diplomatic channels and continued engagement with stakeholders.

In a statement issued Thursday afternoon, Association Vice-President Shiva Kumar Gupta said the industry had decided that keeping factories closed any longer would further hurt tea farmers and workers who depend on the sector for their livelihoods.

“Taking into account the government’s assurance and positive initiatives, as well as the sensitive condition of green tea leaves maturing in tea gardens and the direct impact on the daily livelihoods of tea workers, the association has concluded that factories should not remain closed,” Gupta said.

Export Crisis Hits Key Tea-Producing Districts

The crisis emerged after India’s Tea Board introduced new standards and certification requirements affecting imports of Nepali tea. Industry representatives argue that the new measures have effectively disrupted exports, leaving large volumes of processed tea stranded and creating uncertainty among producers.

The export bottleneck forced tea factories in the country’s major tea-producing districts of Jhapa and Ilam to suspend operations earlier this month.

According to the association, there are around 30 small and large tea processing factories in Jhapa and 65 factories in Ilam, making the eastern region the backbone of Nepal’s tea industry.

The temporary closure raised concerns about losses across the tea value chain, from plantation owners and processors to thousands of tea pluckers and factory workers.

Government Forms Task Force

In response to mounting pressure from the industry, the government has formed a task force to study the export problem and recommend solutions.

The task force has been mandated to assess the impact of the Indian measures, consult stakeholders and submit recommendations to the government. Tea entrepreneurs have been holding continuous discussions with the committee and relevant ministries.

Industry leaders say they are encouraged by the government’s willingness to engage but expect concrete diplomatic negotiations with Indian authorities to restore smooth market access for Nepali tea.

Sector Vital for Exports and Employment

Tea remains one of Nepal’s most important agricultural export commodities, with orthodox tea from Ilam and other eastern districts gaining recognition in international markets for its quality and unique Himalayan characteristics.

The sector supports thousands of farmers, plantation workers, factory employees, transport operators and traders. Any prolonged disruption in exports can have significant economic consequences, particularly during the peak harvesting season when fresh green leaves must be processed quickly to avoid losses.

With factories now reopening, producers hope the government’s intervention and ongoing diplomatic efforts will help remove export barriers and restore normal trade flows.

Industry stakeholders, however, warn that a long-term solution is essential to prevent future disruptions and safeguard Nepal’s tea exports, rural employment and foreign exchange earnings.