STiR coffee and tea magazine

46 STiR coffee and tea | 2026 Quarter 2 Summer (Jun/July/Aug) The premium Chinese market prefers teas made with one leaf and a bud, whereas the traditional Indian market requires two leaves and a bud. Photo credit: Marc Tessier HIMCOOP represents 30 tea estates and exports to 14 different countries. Photo credit: Marc Tessier The Nepal Tea Development Corporation (NTDC) aims to enhance productivity by introducing mechanized production methods. Photo credit: Marc Tessier Small production volumes offer the farmers limited market access. Though HIMCOOP supports these small produc- ers, they still need a strong government marketing strategy to achieve greater mar- ket penetration, as relying solely on pri- vate-sector marketing techniques is risky. Recently, the Government of Nepal has placed greater emphasis on economic diplomacy, with tea as one of the priority agro-export commodities. Most embas- sies abroad now promote tea, especially in South Korea, the UAE, and UN missions. Another issue is the extremely high cost of organic certification. Though the major- ity of Nepali farmers in the hills practice organic farming, it needs to be meticulously documented and certified. As there is no internationally recognized local certifying body, they must rely on foreign certifiers, which is very expensive for small producers. There is potential in the Fairtrade niche market, which could benefit both Nepali producers and organic consumers, but farmers have not been able to fully penetrate this segment. If the tea community focuses on strengthening its link to this market, Nepali producers can gain a sustainable foothold. Business Perspectives Farmers are expanding the area under tea cultivation, which now includes 13 districts, with a focus on the agroforestry concept. As demand for herbal and functional teas grows, more intercropping options are being introduced, including cinnamon, ginger, turmeric, cardamom, and Sichuan pepper. Food safety and quality control play a vital role in the tea business. In Nepal, most tea is processed in small and medium units, with more than 90 small processing units. Keeping this in mind, HIMCOOP members have initiated the establishment of a blending and packaging house equipped with the latest technology to completely avoid physical and chemical contamination and to ensure that packaging maintains flavor and prevents moisture during transportation. The government-owned company Nepal Tea Development Corporation (NTDC), which is also a member, is starting a mechanized production trial project to assess its feasibility for enhancing productivity. With declining productivity in Darjeeling, Nepal has the potential to fill this demand gap in the global market. "The government's Nepal Trade Integration Strategy (NTIS) is planning to devel- op tea as a prioritized export product and is planning to extend tea from east to west," highlighted Baskota. "Aligning with this, HIMCOOP is considering some radical steps to establish easy supply systems to supply Nepali tea to at least 25% of specialty tea shops in the US and Canada (operating a warehouse in the US) and invite social mar- keting companies such as Tee Kampange in Germany." Setting the Benchmark for Specialty Himalayan Tea Nepal's tea industry stands at a pivotal moment. Branding must be elevated to distin- guish Nepali tea from Darjeeling and other regional competitors. To transition from a price-taking supplier to a premium-brand origin, the sector must shift its focus from India-dependent bulk trade to direct premium markets. The foundations are already in place — quality, altitude, organic practices, and skilled farmers. If aligned, Nepal could define itself not just as a tea producer, but as a global benchmark for high-value, specialty Himalayan teas.

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