Tea production in Nepal

Cultivation

Cultivated in hilly areas and in high altitudes is conducive for the highest quality tea. In Nepal, the Eastern mountainous regions host most of the orthodox (as opposed to crush, tear and curl) tea crops at altitudes approximating 3000–7000 feet above sea level. Nepal has six districts in which Orthodox tea is produced; Ilam, Dhankuta, Kaski, Terhathum, Sindhulpalchok, and Panchthar. Among these districts there are a small number of medium-to-large scale tea estates as well as a large number of small holder farmers. Once the tea plant reaches maturity, its leaves can be harvested around four to five times a year, for many years. The different harvests of tea are called flushes. In Nepal there are four separate flushes in a growing season; first flush, second flush, monsoon flush, and autumn flush.

History

The Nepalese tea industry was established in large part by the East India Company’s colonization of India. The most reputable region of India for tea, Darjeeling, introduced hybrid tea plants to Nepal in the mid 1800s. Tea estates became established in the Nepalese regions. Later into the 1900s the Nepalese tea producers acted as suppliers to Darjeeling factories when tea bushes became old and yields decreased. Orthodox tea now provides a source of sustainability for almost 20 000 farmers in Nepal. Farmers are supported by the National Tea and Coffee Development Board created by the Nepalese Ministry of Agriculture. A national tea policy was introduced by the NTCDB in 2000 which aimed to create more access to credit and land for farmers producing tea.

Pesticide use

In terms of pesticide use, there is no Maximum Residue Limit (MRL) in place. However, in the last decade numerous poisonous chemicals such as monocrotophos, quinalphos, ethion, and phorate have been prohibited (as of May 2005).

An Integrated Pest Management (IPM) approach is becoming more popular as an alternative to pesticide application. The IPM approach includes the use of bio fertilizers, vermin-compost, and organic farming. The lack of internal regulation of pesticide use adversely affects the commodity in terms of trade potential.

Economic benefits

The transition from subsistence farming to cash crop farming of orthodox tea provides a benefit to hillside farmers in terms of financial support and involvement in the domestic market. Many traditional farmers have given up subsistence farming and now specialize in solely growing tea. The profits that come from selling tea can then be used to purchase staple foods in a domestic market. The switch from traditional farming to cash cropping has reduced poverty rates among small holder farmers in tea growing. 70% of orthodox tea produced in Nepal in 2006 was by small. Orthodox tea is a profitable crop that is unique to hillside farmers. Forecasts by the NTCDB predict that by 2022 orthodox tea exports will reach 27 million kg, compared to the 2012 figure of 3 million kg. The paired growth in the tea sector will employ approximately 100 000 people. Engagement in over-seas markets will allow Nepali tea producers to capitalize on their product’s high quality and value as a niche product. Nepali orthodox tea is being sold well below premium to bordering countries such as India. A metric ton of Nepali green tea is valued at $1180 in India, but $12000 in the USA. Thus, in order for Nepali farmers and producers of orthodox tea to make the most money from this crop there is a need to export to countries like the USA who pay premium prices for the product.

Value-added and organic farming

The United States Department of International Development recommended increasing the productivity of tea cultivation in Nepal by updating the out of date machinery that most processing factories currently use. Other interventions proposed include the introduction of motorized pruning devices to reduce labour and increase productivity with respect to time. A more recent obstacle that is limiting small farmers is the issue of pesticide use and achieving organic certification. The belief in Nepal is that becoming a certified organic farmer, a costly and time consuming process, will yield significant increases in profit However, with organic tea production, yields decrease and labour increases significantly during initial stages of adaptation. In the end, the major problem for most tea farmers in Nepal is that they occupy the primary or secondary industry. Small tea farmers do not have the means to add value to their tea through processing and packaging, they rely on outside agents to purchase their bulk leaves.

Further reading

• Adhikari, R., & Adhikari, K. (2005). Market access barriers to select nepalese agricultural exports., i-23. http://www.iisd.org/tkn/pdf/tkn_market_access_nepal.pdf