Nepali tea

History

During the 1800s and early 1900s, Nepal was ruled by the Rana Dynasty, whose isolationist policies kept the country independent from British colonial rule but hindered modernization. However, the industry's roots trace to British colonization of India. Around 1863, within a decade of Darjeeling's first tea plantation, hybrid tea bushes were brought to Nepal, and the Ilam Tea Estate was established in Ilam district at 4,500–5,000 feet above sea level.

Two years later, the Soktim Tea Estate was set up in the same district. Later, Nepali producers supplied Darjeeling factories when yields declined.

The nascent industry failed to grow due to political turmoil and economic policies under the Rana dynasty, unable to meet even domestic demand while Darjeeling thrived globally. In the 1950s, a new constitution aimed at democratization opened Nepal's economy, leading to public and private investment in tea. The first private tea plantation, Bhudhakaran Tea Estate, was established in the terai region in 1959.

Present

Today, Nepal's tea industry is dominated by private interests; the first private orthodox factory, Bhudkharan tea private limited, was established in 1960, after the industry had been a government monopoly until the 1980s. Until 2000, annual tea exports were only 100–150 tons, but liberalization led to an exponential rise to 4,000–5,000 tons per year. Nepal now produces about 16.29 million kilograms of tea annually on 16,718 hectares, accounting for 0.4% of world output.

Tea is considered a self-dependent cash crop in agroforestry and a key example of sustainable farming. Main producing regions include Jhapa, Ilam, Panchthar, Dhankuta, and Terhathum, with newer regions such as Kaski, Dolakha, Kavre, Sindhupalchok, Bhojpur, Solukhumbu, and Nuwakot. Exports go mainly to India, Pakistan, Australia, Germany, France, Poland, the Netherlands, Japan, Belgium, and the United States. The Himalayan Orthodox Tea Producers Association (HOTPA) works to improve quality and marketing; its marketing wing, HIMCOOP, was formed in 2003, and a Code of Conduct was implemented in 2006.

The National Tea and Coffee Development Board, created by the Nepali Ministry of Agriculture, supports farmers, and a national tea policy introduced in 2000 aimed to improve credit and land access.

Cultivation

High-altitude hilly areas are conducive to the highest quality tea. In eastern Nepal, most orthodox tea is grown at altitudes of 3,000–7,000 feet above sea level. Six districts produce orthodox tea: Ilam, Dhankuta, Kaski, Terhathum, Sindhupalchok, and Panchthar. These districts contain a small number of medium-to-large tea estates and many smallholder farmers.

Once mature, tea plants can be harvested four to five times a year. Nepal has four flushes: first flush, second flush, monsoon flush, and autumn flush. No Maximum Residue Limit for pesticide is in place, though several poisonous chemicals—monocrotophos, quinalphos, ethion, and phorate—were prohibited as of May 2005. Integrated Pest Management (IPM), using biofertilizers, vermin-compost, and organic farming, is gaining popularity.

The lack of internal pesticide regulation harms trade potential. The United States Department of International Development recommended updating outdated machinery and introducing motorized pruning devices. A major obstacle for small farmers is the costly and time-consuming process of organic certification; organic production initially reduces yields and increases labor. Most tea farmers occupy primary or secondary industry and cannot add value through processing or packaging, relying on outside agents to buy their bulk leaves.

Economic effects

Transitioning from subsistence farming to orthodox tea as a cash crop provides hillside farmers with financial support and domestic market involvement. Many traditional farmers now specialize solely in tea, using profits to purchase staple foods. This shift has reduced poverty rates among smallholder tea farmers. In 2006, 70% of orthodox tea was produced by small farms.

Orthodox tea is a profitable crop unique to hillside farmers. The NTCDB forecasts that by 2022 orthodox tea exports will reach 27 million kg, compared to 3 million kg in 2012, and the sector will employ about 100,000 people. Overseas markets allow Nepali producers to capitalize on high quality and niche value. Currently, Nepali orthodox tea is sold below premium to bordering countries like India; a metric ton of Nepali green tea is valued at $1,180 in India but $12,000 in the US, so exporting to premium-paying countries is key.

Eastern regions like Ilam share geographical and climatic similarities with Darjeeling, contributing to a muscatel flavor. Ilam teas have a unique flavor profile—slightly nutty and floral with a hint of sweetness—resulting from younger tea gardens with fresher, less depleted soil compared to older Darjeeling gardens.

Did You Know?

• Orthodox tea is made from the Chinese variety of the tea plant (C. sinensis var. sinensis) and includes green, oolong, white, and hand-rolled teas.
• CTC tea, processed from the Assam variety (Camellia sinensis var. assamica), accounts for almost 95% of domestic consumption due to lower production costs.
• The first flush of orthodox tea begins in the fourth week of March and ends in April, producing a light yellowish-green liquor with a delicate taste.