A Tea Crisis Years in the Making

Nepal's orthodox tea industry is facing one of its most serious challenges in recent years. More than 300,000 kilograms of Nepali tea already shipped to India remain stranded in warehouses due to prolonged testing procedures, while another 700,000 kilograms sit unsold in factories across eastern Nepal. Faced with overflowing storage facilities and frozen sales, tea factories in Suryodaya, Ilam, have begun shutting down operations. What appears on paper to be a technical quality-control measure has, in practice, become a major trade barrier that threatens an industry supporting thousands of farmers and workers. The impact is particularly severe for nearly 3,000 tea farmers in Suryodaya, whose livelihoods depend heavily on tea cultivation. The municipality produces around 20 million kilograms of green tea leaves annually, supplying a network of more than 65 factories. Since over 90 percent of Nepal's orthodox tea exports go to India, any disruption immediately sends shockwaves throughout the entire value chain. If the current restrictions continue, farmers may be unable to sell fresh leaves, factories may remain idle, and Nepal could lose a market worth billions of rupees. India's new Standard Operating Procedure, introduced on May 1, requires separate testing of tea transported in each vehicle. Laboratory reports can take weeks to arrive, and imported tea cannot be sold until the results are received. Any shipment that fails the test must either be destroyed or returned. Quality standards are a legitimate part of international trade. The concern arises when procedures become so cumbersome that they effectively halt commerce.