KATHMANDU, Nepal, June 15, 2026 (BSS/AFP) - Nepali tea producers temporarily 
shut down dozens of processing factories on Monday following stiffer quality 
testing requirements by India, causing disruptions to the country's exports.

About 86 percent of Nepal's tea exports are sent to India, according to the 
National Tea and Coffee Development Board.

In May, India made quality testing mandatory for Nepali tea imports, stopping 
sales until samples are inspected. The move created a backlog, meaning that 
storage is full at many sites.

"This new situation impacts on Nepal's tea export cycle, affecting everyone 
from farmers and factory workers to the broader country's economy," said 
Deepak Khanal, director of the National Tea and Coffee Development Board.

Gopal Kattel, general secretary at the Suryodaya Orthodox Tea Producers 
Association, told AFP that more than 50 factories were forced to close 
because sales have paused and storage facilities had reached maximum 
capacity.

"More than 200,000 kilograms (440,000 pounds) of Nepali tea already shipped 
in India are stranded in warehouses because of prolonged testing procedures, 
and over 900,000 kilograms are piled in the factories here," Kattel said.

Kattel said that other factories may also have to close.

The eastern Himalayan foothills, particularly Ilam, is one of the country's 
oldest and most important tea-growing regions.

The association warned that the disruption could have a significant financial 
impact on more than 3,000 families in Ilam district who depend on tea farming 
for their livelihoods, as well as hundreds of labourers involved in picking 
across the region.

Netra Prasad Subedi, a spokesperson at the Ministry of Industry, Commerce and 
Supplies, said Nepal's government "is looking for a diplomatic solution for 
this issue".

The Himalayan nation exports approximately 15,600 metric tons of tea annually 
to India, generating around $27 million in revenue, according to the board.

India has not publicly responded to the complaints by Nepali tea producers.

Nepal, a landlocked Himalayan nation of 30 million people, must ensure a 
delicate diplomatic balance between its two giant neighbours, India and 
China.

India has long considered Hindu-majority Nepal as a traditional ally, with 
open borders along the plains.

India is also Kathmandu's largest trading partner, accounting for 63 percent 
of imports, or $8.6 billion, followed by China at 13 percent, or $1.8 
billion, according to World Bank figures.