Organizing a program in the capital on Tuesday, Nepal Tea Producers´ Association, Himalayan Orthodox Tea Producers Association (HOTPA) and Nepal Tea Development Corporation have demanded that the government provide 4 percent cash incentive on export of tea to India as well as other countries. According to a joint statement, they also asked the government to simplify the cash incentive delivery process by distributing incentives through banks. They have also asked the government to develop a joint trademark of Nepali tea. [break]
“The government has been providing only 2 percent incentives that too for export to third countries only. As India is our big market, we request the government to provide 4 percent incentives on export to India as well as other countries,” Kamal Mainali, treasurer of HOTPA, said at the program.
Tea producers have also asked the government to provide 50 percent subsidy on electricity bills of tea processing plants and arrange separate feeder for them so that they get regular power supply.
They have also asked the government to provide subsidy on chemical fertilizers.
At present, the government has been providing 15,000 tons of chemical fertilizers per year on subsidized rates to small tea farmers.
“As frequent shortage of pesticides is affecting tea production, we request the government to allow us to import pesticides.
At present, only the government agencies are allowed to import pesticides.
Tea producers have also demanded that the government review 5 percent customs duty that the government is levying on import of coal required for tea processing.
Other demands put forth by the tea exporters and producers include 80 percent discount in VAT and reduction of bank interest rates to 6 percent
“We can compete with neighboring countries like India if all these demands are addressed by the government. Or else, we will have no option but to shut down,” Mainali said.
Speaking at the program, Chiranjivi Nepal, chief economic advisor to Ministry of Finance, acknowledged that the government failed to keep tea sector in priority in the budget for this fiscal year. Saying that 96 percent of tea produced in the country is exported to India, Nepal urged tea producers to explore alternative markets.
Tea entrepreneur Deepak Baskota asked the government to take initiative for ending re-test of orthodox tea at the Indian border.
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