Tea factories in Nepal’s Ilam district are preparing to suspend operations starting June 15th due to new export restrictions imposed by India. The changes involve stricter testing rules implemented by the Indian Tea Board, resulting in over 300,000 kg of Nepali tea being held in Kolkata. This disruption is impacting the entire export supply chain, leaving Nepali producers unable to ship their product to market. Factory owners report being forced to cease production due to the accumulating backlog and uncertainty. The new regulations have created significant challenges for Nepal’s tea industry, which relies heavily on the Indian market. The situation threatens livelihoods and the economic viability of tea production in the region. No immediate resolution appears to be in sight as stakeholders grapple with the implications of the new rules.
