Kathmandu, July 1: Nepal has resumed tea exports to India after a two-month suspension, following New Delhi's decision to ease import regulations. The exports restarted on Tuesday after being halted from May 1, when the Indian Tea Board introduced stricter import rules.
Foreign Minister Shisir Khanal informed the National Assembly on Wednesday that India had reviewed its policy on tea imports from Nepal, allowing exports to resume. He said he had also discussed the issue with senior Indian officials during his recent visit to India, PTI reports.
India remains the largest market for Nepalese tea.
Exports Resume After Easing
“Export of Nepalese tea to India resumed from Tuesday, June 30, after India eased the regulation (to import Nepalese tea),” said Kamal Mainali, president of the Nepal Tea Association. Mainali said trucks carrying Nepalese tea consignments have started heading to India following the relaxation of import rules, PTI reports.
Under the revised arrangement, Indian authorities will now conduct sampling tests on only 20% of tea consignments instead of testing every shipment. Samples will also be collected from only one out of every five trucks before export permits are issued, provided the tea meets the required standards, Mainali said.
Reliance On Indian Market
Nepal had undertaken diplomatic efforts to persuade India to ease the regulations after tea manufacturers suspended production for nearly two months due to the export restrictions. According to the e-Kantipur news portal, about 90% of Nepal's orthodox tea is exported to India, making the country heavily dependent on its southern neighbour for the tea trade.
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“Only a very small portion of Nepali tea reaches third-country markets. Nepal produces 7,838 tonnes of orthodox tea annually. Exports to third countries account for only 11.4% of total orthodox tea exports,” the news portal said in a report after the export was blocked.
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