Opinion | Unlocking the shackles of tea export
Summary
Nepalese tea exporters face challenges due to India's strict testing requirements despite duty-free access under trade agreements. Improvements in quality infrastructure and negotiations are needed to ease export barriers.
Key Points
- Nepali tea exporters recently gained some relief from mandatory testing on all consignments to India, now limited to 20 percent sample testing.
- Tea is a significant agricultural export for Nepal, employing around 40,000 people and primarily exported to India, with some shipments to the EU, US, and East Asia.
- Nepal and India have preferential trade agreements providing duty-free access, but non-tariff barriers like stringent testing in India impact Nepali exports.
- Nepal needs to strengthen its quality infrastructure domestically and negotiate effectively with trading partners to overcome sanitary and phytosanitary barriers.
