ILAM, June 16: Tea farmers in Suryodaya Municipality of Ilam have been left in fear after tea entrepreneurs announced a shutdown of tea industries from June 15, citing unresolved issues in tea trade and exports.
The announcement, made at the peak season for green tea leaf plucking, has raised deep concern among farmers who depend entirely on green leaf sales for their livelihood.
If the industries shut down, green tea leaves will not be processed. Experts say tea leaves are plucked every seven days, and even a one-day delay affects quality. The shutdown decision by Suryodaya Orthodox Tea Producers’ Association Nepal (SOTPAN)—comprising 53 tea industries—could therefore directly hit farmers at a critical time.
According to the association, around 2,995 farmers supply green tea leaves daily to its member industries. With operations halted, farmers say they are now uncertain where to sell their produce, raising fears of severe financial distress.
Mukunda Acharya, a tea farmer from Laxmipur in Suryodaya Municipality–14, said repeated government neglect has led to the current crisis. “We have repeatedly requested both this and previous governments in Kathmandu to ease tea exports and open international markets beyond India,” he said. “Neither green leaf sales nor processed tea exports have been made easier. The biggest impact is on farmers, but no one understands our situation.”
Acharya said nearly 200 farmers in his area alone sell over 50,000 kg of green leaves per month through cooperatives to Laxmi Tea Estate in Suryodaya Municipality–13. “The shutdown has broken farmers’ morale. Most of us depend on green leaf sales, and now there is uncertainty about how we will survive,” he added.
He also said the situation reflects government indifference. “Industry owners are also not to blame in this case. Even when tea sales were delayed, they used to pay farmers. But now, when processed tea itself is not selling, they will not be able to pay farmers either,” he said. “This is complete neglect of farmers by the government. We have worn out our shoes going to Kathmandu, but no one listens.”
Most farmers in the region have replaced crops like maize, millet, cardamom, and rice with tea cultivation. However, with peak production coinciding with a market crisis, they fear a direct threat to their livelihoods. “If this continues, farmers will never be able to earn a living from agriculture,” Acharya warned.
Tea industry shutdowns will not only affect farmers but also workers, transporters, traders, and their families, he said.
Dambar Katwal, a farmer from Gogane in Suryodaya Municipality–7, said he believes India has been creating repeated barriers for Nepali tea exports.
First flush of green tea goes to waste due to lockdown
“India has repeatedly betrayed Nepali tea. Despite our concerns, the government has not taken it seriously or supported quality improvement,” he said. “If green leaf sales stop from June 15, hundreds of farmers, workers, and their families could face hunger.”
He urged the government to take immediate action and ease exports. “If processed tea is only sold in India, this problem will keep repeating,” he said. “Only if Nepali tea is allowed into European markets smoothly will farmers and workers get relief.”
Tea entrepreneurs have announced the industry shutdown after the Indian Tea Board imposed multiple strict standards on Nepali tea imports during the peak production season, citing quality checks.
Industry representatives say Indian authorities have been delaying Nepali tea shipments at Kolkata ports for up to a month under quality testing procedures.
According to entrepreneurs, more than 300,000 kg of Nepali tea has been stuck in Indian markets under quality inspection, while over 700,000 kg of processed tea is currently in stock inside Nepal.
SOTPAN Chair Dilli Shrestha said factories are running out of storage space as tea remains unsold.
“We cannot sell processed tea, and we also do not have space to store it,” he said. “Farmers must be paid, so we had no option but to shut down industries.”
Mid-March to mid-April and mid-April to mid-May, known as the first flush season, produce the highest-quality and highest-priced tea. However, entrepreneurs say this is exactly when India has imposed stricter standards for Nepali tea exports.
On May 1, 2026, the Indian Tea Board implemented a Standard Operating Procedure (SOP) for tea imported from Nepal, making quality testing mandatory for each shipment.
Under the SOP, test reports take more than 20 days, during which tea cannot be sold. If approved, it can be sold; if rejected, it must either be destroyed or returned. Re-testing after failure takes another three weeks, with additional charges and delays, making the process highly restrictive for Nepali exporters.
Following the restrictions, entrepreneurs visited Kathmandu on 10 May 27 and urged the Prime Minister’s Office and the Ministry of Foreign Affairs to initiate diplomatic efforts.
Later, the Indian Tea Board issued a statement on May 19, 2026, allowing Nepali tea to be sold in the Indian domestic market, and some industries resumed sales. However, confusion returned after the board later clarified that the earlier statement was not official and reinstated strict enforcement of the May 1 SOP, deepening industry concerns.
“We no longer know where to sell our tea,” said entrepreneur Gopal Kattel. “The attempt is clearly to block the market for processed Nepali tea. With no alternative left, we are forced to shut down industries.”
He said the federal government has failed to listen to the industry’s concerns. “If diplomatic efforts are not made immediately, billions worth of Nepali tea could lose its market,” he warned.
MP Nembang demands resolution
CPN-UML lawmaker Suhang Nembang, elected from Ilam Constituency-2, has urged immediate diplomatic intervention to resolve the crisis in Nepali tea exports.
He said the Prime Minister’s Office, Ministry of Foreign Affairs, Ministry of Industry, Commerce and Supplies, Ministry of Agriculture, Forest and Environment and the Nepali Embassy in New Delhi must coordinate high-level diplomatic efforts to resume tea exports.
He also called for priority inspection of stranded shipments in India, approval of sales, and measures to protect entrepreneurs from storage, transport, and delay costs.
Nemwang further suggested mutual recognition of laboratory certificates between Nepal and India, joint testing protocols, online tracking systems, and fixed timelines for clearance.
He stressed the need for emergency working capital support, interest relief, storage facilities, and guaranteed payments for farmers to keep industries running.
He also called for establishing an internationally recognized tea testing laboratory in eastern Nepal, developing traceability systems for Nepali tea, and expanding alternative markets in China, the Middle East, Europe, and Pakistan as a national campaign.
“The crop that farmers nurtured through the year is now facing a blocked market at harvest time,” he said. “For Ilam farmers, tea is not just a crop—it is life. It pays for food, education, medical care, loans, and hope for the future. When the tea market is blocked, it does not just stop income—it puts an entire life cycle at risk.”
Tea farming covers 33,655 ropanis in Suryodaya Municipality, producing around 20 million kg of green leaves annually.
MP Rai raises issue in Parliament
Nepali Congress lawmaker Nishcal Rai, elected from Ilam Constituency-1, told Parliament that tea entrepreneurs and farmers are preparing to come to Kathmandu for protests as their concerns remain unheard.
“The issue must be resolved immediately through government-to-government (G2G) talks,” he said. “The government must also focus on expanding tea trade to third countries.”
