Nepali tea has huge potential in the global market. But unfortunately, it hasn’t been able to secure a firm footing in foreign countries thereby losing millions in cash. Apparently, tea producers in Nepal can’t export their products without signing a trade agreement with the country they are willing to sell their products to.
Nepali tea is especially popular in the Chinese market. According to tea entrepreneurs, tea is one of the major souvenirs Chinese tourists bring back home from their trip to Nepal. However, Nepal still hasn’t worked out a trade agreement with neighbouring China, thereby preventing tea sellers to enjoy the market prospect there.
On top of that, the COVID-19 restrictions, for the last couple of years, has only exacerbated the situation. Tea worth millions of dollars is currently stacked inside warehouses since last year due to border closure and China’s trade ban.
According to Sharad Subba, Manager of Ilam-based Jasbire Tea Industry, Rs. 13.5 million worth of tea prepared to be exported to China is currently lying idle in storehouses. “It’s a troubling situation. Chinese traders can’t come to Nepal because of the pandemic. And we can’t afford to take Nepali tea across the Chinese border because of high tax levied on our products,” bemoans Subba.
Mostly golden, white, green tea, Olang tea, and pearl tea prepared in Nepal have higher demand in the Chinese market. “The Chinese people enjoy different kinds of aromatic tea, which they love about tea produced in Nepal. If we could have a proper trade agreement to export our products to China with relaxed trade duty, there would be huge benefits to reap for the tea plantation industry,” he explains.
Som Sharma, another tea trader based in Phakphokthum, has a similar experience. “We know the market but lack proper access,” he said. Sharma is worried about his 500 kg worth of white and golden tea, which is now stocked in warehouses. “The produce was supposed to reach China but is now going to waste in the store,” he adds.
Acknowledging the problem, Tea-Coffee Board-Nepal is reportedly working on initiating the trade treaty. As per Bishnu Prasad Bhattarai, Executive Director of the board, the MoU draft is almost ready. “We will be soon signing the MoU, presumably after the resumption of international flights,” he says.
Source : TRN,
