Key Takeaways:
- Nepal exported 13,045 tonnes of tea worth Rs 3.53b in FY 2025/26
- Down from 15,311 tonnes valued at Rs 4.17b a year earlier
- Revenue loss of Rs 639.7m linked to price swings and quality checks
- India remains the principal market for Nepal's CTC and orthodox tea
Nepal's tea exports to India suffered a setback in the last fiscal year, shaving nearly Rs 640 million off export earnings as shipments through the Kakarbhitta border declined amid price volatility, quality-related trade barriers and changing market demand.
According to the Kakarbhitta Customs Office, Nepal exported 13,045 metric tonnes of tea worth Rs 3.53 billion in FY 2025/26, down from 15,311 metric tonnes valued at Rs 4.17 billion a year earlier.
The decline translated into a year-on-year revenue loss of Rs 639.7 million, with export volume also falling by more than 2,260 metric tonnes.
Chief Customs Administrator Shivalal Nyaupane said tea remains the second-largest export commodity through the Kakarbhitta customs point after large cardamom. He attributed the decline to fluctuations in Indian market prices, non-tariff barriers during quality inspections, and changes in international demand and pricing.
As India remains the principal destination for Nepal's CTC and orthodox tea, the slowdown is expected to affect growers, processors and exporters alike, highlighting the sector's continued reliance on a single export market.