Kathmandu, December 26:

Businessmen and experts today stressed on the need of quality production and effective market promotion to boost exports of two highly competitive products Nepali tea and pashmina.

They also noted that these two specific products have not only high export values but also possess comparative and competitive advantages and could easily secure international markets. Nepal’s rich biodiversity and unique topographical and climatic features as well as traditional skills and cheap labour provide abundant opportunities to develop these products, they said.

Addressing a discussion programme on ‘market intelligence and international standards for tea and pashmina’ organised by Nepal Chamber of Commerce (NCC), in cooperation with Enhancing Nepal’s Trade Related Capacity (ENTReC-UNDP), they also noted that these two products — tea and pashmina — could create a niche market.

“Of these two products, tea has high hopes for boosting Nepal’s exports,” said NCC president Surendra Bir Malakar, adding that increased exports of tea has had a tangible impact on socio-economic development of the concerned stakeholders. He asked the government to play a proactive role in introducing trade facilitation measures, while the private sector is ready to work hard on ensuring adequate supply and quality production. “The Nepali exports are finding difficulties not because of market access and tariff barriers but mainly due to non-tariff barriers,” Malakar said.

Presenting a paper on market intelligence and international standards for tea, Shanker Man Singh of NCC, said that tea production and exports, both has steadily grown over the years. But Nepali tea has yet to penetrate huge market and establish itself.

Nepal’s tea cultivation covers more than 16,000 hectares of land and annual production

is estimated to be over 13.6 million kg and generates employment opportunities for more than 21,000. “Though it’s a promising crop in generating foreign exchange and regular cash income for the farmers, Nepal’s share in total global tea export is very less, only about 0.2 per cent,” Singh added.

Deepak Prakash Baskota, president of Himalayan Orthodox Tea Producers Association (HOTPA) said the orthodox tea producers and exporters have unveiled an ambitious plan of making all orthodox tea produced in Nepal completely organic within the next five years.

“The initiative has been taken considering the growing demands of Nepali orthodox

tea as well as to create a niche market,” he said, adding that all orthodox tea produced in Nepal will be free of pesticides, insecticides, herbicides and other toxic chemicals by 2012.

According to HOTPA, orthodox tea is grown at an altitude from 1000m to 2500m above sea level, mainly in the hills of eastern Nepal including Ilam, Panchthar, Terahthum and Dhankuta. It has now expanded to Sindhupalchowk, Nuwakot and Pokhara, too.

The land covered by orthodox tea plantation is estimated at over 7,500 hectares and annual production is estimated at 1.6 million kg, which is growing at an annual average of 20 per cent. However, 95 per cent of the total production is exported, with a mere five per cent consumed domestically.