India has introduced a series of strict measures to safeguard its domestic tea industry amid rising imports, prompting concern among Nepali exporters who warn the move could significantly disrupt one of Nepal’s key foreign exchange-earning sectors.

Effective May 1, all tea consignments entering India—including those from Nepal—will be subject to mandatory lab testing, according to a notification by the Tea Board India. The move is aimed at tightening quality checks and curbing adulteration.

Under the new Standard Operating Procedure, each import consignment will undergo sampling and testing. However, instant tea and ready-to-drink tea are exempted.

Indian importers will also be required to submit detailed information—such as arrival date, warehouse location, container details and proforma invoice—through the Tea Council portal. An application fee of INR11,120, plus applicable GST, will be charged per sample.

Tea Board officials will randomly select containers and collect two sets of 500-gram samples within 24 hours of arrival, or from warehouses if sampling at the port is not feasible.

Laboratories are required to upload test results within 14 days, categorising consignments as pass or fail.

Until clearance is granted, imported tea must be stored separately in warehouses and cannot be sold domestically or re-exported. If a sample fails, importers can request testing of a reserve sample at another laboratory for an additional fee of INR15,000 plus GST. If the second test also fails, the consignment must either be destroyed or returned to the country of origin.

The rules also require that imported teas meant for re-export be shipped out within six months and achieve at least 50 percent value addition, along with mandatory labelling and source disclosure.

Nepali exporters say the provisions could effectively halt tea shipments.

“The new provision will completely halt tea exports from Nepal,” said Shiva Kumar Gupta, vice-president of the Nepal Tea Planters Association. “Transport vehicles will be held at Kakarvitta customs until lab reports are issued.”

Exporters also point to logistical challenges, noting that the Kakarvitta customs point lacks sufficient parking space to hold vehicles for extended periods. Most samples are currently sent to a central food laboratory in Kolkata, adding to delays.

They warn that additional testing fees and longer clearance times will increase costs, making Nepali tea less competitive in the Indian market.

“We have raised the issue with the Agriculture Ministry,” said Deepak Khanal, spokesperson for the National Tea and Coffee Development Board. “If not addressed promptly, it will have a serious impact on the sector.”

Khanal added that delays in obtaining lab reports would increase both transport costs and turnaround time for traders.

The development comes despite recent progress in the recognition of bilateral food testing.

In April last year, India’s food safety authority recognised certificates issued by Nepal’s National Food and Feed Reference Laboratory for eight products, including juice, jam, pickles and instant noodles. Nepal had planned to seek similar recognition for tea and other products.

Exporters now fear additional restrictions, including possible quotas or reciprocal taxes. Nepal currently imposes a 30-40 percent tax on imported Indian tea.

Although such measures would contradict existing trade agreements, exporters say India could still impose them to discourage imports.

The sector is already under strain.

Tea production fell by 25-30 percent in the last fiscal year due to a looper pest infestation, while rising costs have pushed many farmers to switch to alternative crops.

Farmers currently receive Rs25-35 per kg for green leaves, while exporters sell processed tea to India at Rs160-180 per kg.

Nepali producers have begun exploring alternative markets, particularly China, where demand for orthodox and speciality teas is growing. China grants zero tariffs on more than 8,000 products from the least developed countries, including Nepal.

Chinese buyers have increasingly visited tea gardens in Ilam in recent years, and officials say Nepali tea has strong market potential there. However, exporters remain cautious about increasing shipments northward.

As Nepal prepares to mark its 30th National Tea Day on Tuesday (April 28), the sector faces mounting challenges.

Tea exports declined by 19 percent in the first nine months of the current fiscal year, with shipments totalling Rs2.89 billion. Export volume dropped 22.2 percent to 10,124 tonnes, according to the Department of Customs.

India remains the primary market, accounting for the bulk of exports. Nepal shipped 9,529 tonnes of black tea worth Rs2.32 billion to India during the review period. Smaller quantities were exported to the UAE, Russia, Iraq, France, Germany, Japan and Turkey.

In the last fiscal year, Nepal exported 15,598 tonnes of tea worth Rs4.59 billion, up 26.64 percent from the previous year.

Tea cultivation in Nepal spans over 20,302 hectares and involves more than 15,000 farmers, employing around 60,000 people. The country has 170 tea estates and 120 processing units.

Despite its long history—dating back to the establishment of Ilam Tea Estate in 1863—the sector faces persistent structural challenges. Exporters say shipments, particularly of crush-tear-curl (CTC) tea, are frequently obstructed at the Indian border.

They also highlight the absence of a domestic auction system, which forces Nepali producers to rely on prices set by Indian buyers.

Producers say longstanding issues—from fertiliser shortages to policy gaps—remain unresolved, driving many small farmers out of the sector and threatening the future of Nepal’s tea industry.