Tea exports to India decline through Kakarvitta point

Exports of Nepali tea to India through the eastern border point at Kakarvitta in Jhapa have declined. According to the Kakarvitta Customs Office, both the volume and value of tea exports declined during the last fiscal year 2082/83 BS compared to the previous fiscal year.

Customs Office statistics indicate that Nepal exported 13,045 metric tons of tea worth Rs 3.53 billion to India in fiscal year 2082/83 BS, down from 15,311 metric tons worth Rs 4.17 billion in fiscal year 2081/82 BS. Along with the decline in the export volume, tea export earnings also fell by Rs 639.69 million. According to Chief Customs Administrator Shivlal Neupane, tea is the second-largest export commodity, after cardamom, shipped through the Karkarvitta border point.

Neupane said that since India is the primary market for Nepali tea, exports have been affected by price fluctuations in the Indian market, non-tariff barriers related to quality testing, and changes in production and pricing driven by international market demand.

A significant portion of CTC and orthodox tea produced in Nepal is supplied to the Indian market via the Karkarvitta point. The decline in exports is expected to adversely affect tea farmers, industrialists and suppliers, while also widening the country's trade deficit.