How India’s Testing Rules Have Pushed Nepal’s Orthodox Tea Industry to the Brink
Summary
India's new regulation requiring laboratory testing for every truckload of Nepali orthodox tea has forced 86 tea factories in Nepal's eastern hills to shut down from June 15, disrupting the livelihoods of thousands and causing inventory bottlenecks exceeding one million kilograms.
Key Points
- India's Tea Board enforced a mandatory laboratory test for each truck of Nepali tea entering India from May 1, 2026, leading to prolonged delays and stockpile issues.
- All 56 tea processing factories in Suryodaya Municipality and 30 in Jhapa have announced a shutdown starting June 15, 2026, due to unsellable stock and financial strain.
- The new Indian testing rule replaced previous batch testing with 100% individual consignment testing, causing a near-total export blockade for Nepali orthodox tea.
- Nepal's tea industry, reliant on India for over 90% of its exports, faces severe financial impact, affecting thousands of farmers, workers, and foreign exchange earnings.
- India's policy is officially for quality control, but Nepali stakeholders view it as disguised protectionism, amplifying logistical and trade complications.
