FNCCI urges FM Khanal to press India over new tea export hurdles

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Thursday urged Minister for Foreign Affairs, Shisir Khanal, to use diplomatic channels to remove new hurdles affecting Nepali tea exports to India.

A delegation led by FNCCI President Anjan Shrestha met Minister Khanal at the Ministry of Foreign Affairs in Singha Durbar to raise concerns about complications arising from recent provisions issued by the Tea Board India. The industry says the new standard operating procedure (SOP) has added procedural burdens despite no problems with the quality of Nepali tea.

Minister Khanal told the delegation that the government is taking the matter seriously and that talks with Indian officials are already underway. He said, “We have already advanced conversations with Indian officials to resolve the problems seen in the export of Nepali tea. Initiatives are being taken from the diplomatic level to find a practical solution to the problem. According to the information received from the Indian side, a solution will be found soon.”

The FNCCI warned that the tea sector, with an annual turnover of about Rs 12–14 billion, supports hundreds of thousands of livelihoods and that a crisis in the industry would have wider economic consequences. FNCCI President Shrestha urged swift action to prevent disruption to producers and traders.

Shrestha also called for a long-term fix, saying Nepal should establish an internationally accredited laboratory to handle testing domestically. Members of Parliament present at the meeting, including Ganesh Parajuli of Rastriya Swatantra Party (RSP) and Rahbar Ansari, chair of the House of Representatives’ Industry, Commerce, Labour and Consumer Welfare Committee, said both short-term and long-term measures are needed.

Krishna Bahadur Raut, secretary at the Ministry of Industry, Commerce and Supplies, said his ministry is working through its channels to ease procedures and expressed optimism that positive results will follow soon.

Industry representatives attending the meeting included FNCCI Senior Vice President Sur Krishna Vaidya, Vice President (Commodity) Naresh Lal Shrestha, former vice president Hem Raj Dhakal, and Nepal Tea Producers Association President Aditya Parajuli. The delegation asked that the issue be raised prominently in bilateral trade mechanisms with India to ensure continued market access.