Demand for Nepali tea and coffee rises in the international market
The international demand for Nepali tea and coffee has been steadily increasing, with both sectors showing notable growth in exports. According to the National Tea and Coffee Development Board (NTCDB), coffee exports during the fiscal year 2022-23 reached 77 metric tons, up from 72 metric tons in the previous year. The total value of these exports amounted to Rs 96 million, marking a significant increase in both volume and revenue.
The NTCDB is currently compiling data for the fiscal year 2023-24, but initial signs point to continued upward trends in export figures. In terms of coffee imports, Nepal saw a significant decrease in the 2022-23 fiscal year, with imports dropping to Rs 100 million—around Rs 220 million less than the previous year. This reflects a shift in the country’s coffee production capabilities, as more locally grown coffee is being exported to meet rising international demand.
Coffee cultivation in Nepal is predominantly in the mid-hill regions, where the ideal altitude, climate, and soil conditions make it a prime location for growing high-quality Arabica beans. Currently, coffee is grown across 3,659 hectares of land, with approximately 33,000 farmers involved in production. Major coffee-growing districts include Gulmi, Palpa, Arghakhanchi, and several others in the mid-hill regions. Specialty-grade coffee from Nepal is especially prized for its unique flavors, often described as a mix of chocolate, citrus, and floral notes. Nepal exports its coffee to various international markets, including Japan, South Korea, the United States, Germany, and the UK.
The global demand for specialty coffee has also opened up new markets in Asia and the Middle East. While coffee exports still represent a smaller portion of Nepal’s agricultural exports, the sector has seen impressive year-over-year growth, particularly in premium markets.
On the tea front, Nepal has also seen significant progress. During the fiscal year 2078-79 BS, tea exports were valued at Rs 3.8 billion, with a further Rs 140 million increase in the following year. There are currently 161 tea industries in the country, employing around 60,000 workers, primarily in the eastern regions such as Ilam, Panchthar, and Dhankuta, where orthodox tea is produced. Nepal’s tea exports are diverse, including Orthodox tea, CTC tea, Oolong tea, and white tea, with increasing global recognition for its organic and specialty products.
The majority of Nepalese tea is exported to India, Europe, the United States, and Canada, with growing interest from other parts of Asia and the Pacific. The government, through the NTCDB, has been promoting the tea sector with support measures such as subsidies and training programs aimed at improving yield and quality. Additionally, many tea producers have adopted organic and sustainable farming practices to cater to the growing global demand for environmentally conscious products. Certifications like Fair Trade and Organic have significantly boosted the market appeal and value of Nepalese tea.
The increasing recognition of both Nepali tea and coffee on the international stage is a testament to the country’s growing prominence as a supplier of high-quality, sustainable agricultural products. As global demand continues to rise, both industries are expected to experience further growth, contributing to Nepal’s economic development and improving the livelihoods of thousands of farmers across the country.
