FNCCI urges govt to seek diplomatic action after India tea rules halt exports
KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the Government of Nepal to take immediate diplomatic and policy measures after new rules introduced by the Tea Board India, on May 1, halted Nepali tea shipments and disrupted the domestic tea industry.
FNCCI said the Tea Board India’s new Standard Operating Procedure (SOP) and a requirement for mandatory testing of every consignment have created 'serious obstacles' for exporters. The federation said quality testing is cumbersome, reports take 20-25 days, warehouse fees are mandatory, and consignments may be destroyed if reports are weak. These measures have effectively stopped exports to India.
The federation highlighted the sector’s economic importance, noting annual transactions of Rs 12-14 billion, exports to India worth more than Rs 5 billion, and direct employment for over 60,000 people. FNCCI added that the sector contributes about Rs 1 billion in revenue to the state each year and helps reduce the country’s trade deficit.
Industry representatives say cash flow has stalled because factories cannot ship finished tea. FNCCI warned producers cannot pay farmers for green leaves, meet wage obligations, or cover taxes and electricity charges because of the export standstill.
Meanwhile, FNCCI has called on the Ministry of Industry, Commerce and Supplies (MoICS) to take 'immediate concrete diplomatic and policy steps' to protect the sector. Additionally, the federation repeated a long-standing demand for an accredited testing laboratory in Nepal, saying this is needed for a lasting solution to quality-related export barriers.
The federation appealed to the Government to treat the issue as a high priority, saying the livelihoods of thousands of farmers, workers and entrepreneurs are at stake and urging a swift diplomatic resolution to restore trade and operations in the tea industry.
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