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spotlogo2.jpg (6318 bytes) VOL. 24, NO. 17, NOV 26 -  DEC 02  2004 ( MARGA 11, 2061 B.S. )

NEPALI TEA


Hitting The Global Market

Demands for Nepalese tea is growing in global market 

By THAKUR AMGAI 

Although Nepal is a new player in the international tea market, Nepalese tea is gradually establishing itself as a popular brand. Grown in high mountains, Nepalese tea has its own special flavor.

Participants at the festival : Discussing tea promoting

But, the way ahead for Nepalese tea is not much easy. With the entry of Nepal into WTO, Nepalese tea producers have to compete in the global market for price and quality. Since European countries have placed tough standards for pesticides, tea producers will need to control its use.

According to recent trends and statistics, Nepalese tea has a good quality and can compete in the global market. However, lack of institutional development and a lack of improved technology of farming could obstruct in the achievement of this goal.

Organized by various institutions involved in the areas of tea producing, trading and policymaking, the tea festival showcased different flavors of tea produced in Nepal. The festival was named 'Nepal Tea and the World.' The international tea event lured tea producer, exporters, buyers from many countries including Germany, Japan, USA, Canada, India, Pakistan and Nepal.

After the opening up of the Pakistani market for Nepalese tea, the export to Pakistan has jumped by many folds and the demand for Nepalese tea is growing there. Nepal has been exporting its tea to Germany and some other European countries for quite a long time. 

"There is a need to promote Nepali brand in order to address this problem," said Dev Bhakta Shakya, Director of Agriculture Entrepreneurship Center at the Federation of Nepalese Chamber of Commerce and Industry (FNCCI).

Traditionally, tea is planted in the hills of eastern Nepal but plantation has gradually shifted to central region as well. Hills of Ilam, Panchthar and Taplejung and plains of Jhapa, Sunsari and Morang are famous for their tea plantations.

Last year the total production of tea was 1.6 million kgs and Nepal exported tea worth Rs. 500 million. Experts reveal that the production of tea has been growing at 20 percent annual growth rate and so has the export. "Nepalese tea has its own flavor and taste. There is a huge untapped market," said Deepak Prakash Banskota, vice president of Himalayan Orthodox Tea Producers Association (HOTPA).

Others, too, agree that Nepalese tea has huge potential of export. Tea plantation kicked off in Nepal some 142 years ago, but institutional efforts to make it an industrial and commercial venture started much later. The topography as well as the climate in eastern Nepal matches that of Darjeeling of India, which is home to many tea gardens. However, while the tea from Darjeeling has made a brand name and gained popularity worldwide, the Nepalese tea market is limited to few cities of few countries only.

It has been reported that Indian businessmen in the border area buy Nepalese tea and export it to the global market labeling it as Darjeeling tea.

The visit of the Pakistani Prime Minister Shaukat Aziz also proved to be helpful for the promotion Nepalese tea. Pakistan has decided to waive the custom duty for Nepalese tea. Nepal had exported 0.9 million kg tea to Pakistan last year. The exemption of the custom duty is likely to increase its export this year.

However, according to Krishna Prasad Dhakal, executive director of Nepal Tea and Coffee Development Board, Nepalese tea has not been able to compete in the Indian market in terms of quality and price. He opines it is because of the lack of institutional efforts in tea plantation.  He said, "Tea plantation is limited to the initiation and efforts of individual farmers at present. To make it able to compete in the international market, institutional efforts should be made in a sustainable manner. The festival is a good opportunity for that."

Presently Nepal has been chiefly exporting Orthodox tea in European and other developed countries. The kind of tea, produced without using any chemical fertilizers and other chemicals has higher demand in the world market and fetches higher price in the world market. Out of total 15,000 hectares of land where tea is planted Orthodox tea is planted in 689 hectares of land.

According to Dr. Dev Bhakta Shakya, Orthodox tea production has gradually increased in the last couple of years and that the festival would help to increase its export. Presently, there are 85 large estate plantations and 7,500 farmers engaged in it. 


KEEP AGM Held 

The eighth Annual General Meeting of the Kathmandu Environment and Education Project (KEEP) was held on Sunday, 21 November in Kathmandu. The meeting discussed various issues on improving awareness to reduce environmental degradation as a result of tourism, among others.

On the occasion, P. T. Sherpa, the executive director of the project informed the members and participants on issues of tourism and environment through a slide show.

The participants stressed the need for responsible attitude and action from everybody involved in tourism for the reduction of environmental impacts. "If environment deteriorates what are we going to show to tourists to lure them?" questioned Karna Shakya, a renowned tourism entrepreneur and the chief guest of the program.


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