This document provides an overview of tea plantation in Nepal. Some key points: - Tea was first introduced to Nepal in the 1800s and is now grown across 5 eastern districts, with production split between large estates and small farmers. - Nepal produces both CTC and orthodox tea, with CTC accounting for around 87% of production. Tea is an important crop, employing over 100,000 people. - While domestic consumption is rising, most tea is exported, mainly to India. The government body NTCDB works to promote and develop the tea industry. - Tea production has increased in recent decades but the industry still faces challenges around marketing, infrastructure and meeting international standards.

1. Tea Plantation in
Nepal
Presented By
Gaurab Luitel
National Tea and Coffee Development Board
Kathmandu, Nepal

2. Official name: Democratic Republic of
Nepal
Capital:
Kathmandu
Language:
Nepali
Currency:
Nepalese Rupees.
1US $=approx 80 NRs
Population:
26.6 million
Density:
180 per sq. km
Religion:
Hinduism(81%),
Buddhism (10%),
Islam (5%)
Christanity(4%)
Major
Landmarks: Birthplace of Lord Buddha.
Country of Mount Everest.

8. Latitude:
26 12' to
30 27' North
Longitude:
80 4' to
88 12' East
E-W length:
880 km
N-S length:
240 km
Area:
147,181 Sq Km
Altitude:
Range from 60 m
to 8,848m above
sea level.

9. Geographical Division:
Himalayan region (19% ):
Hilly region (64%):
Terai region (17%):
4500m to 8848m
300m to 4500m
60m to 300 m

10. An average temperature drop of 6°C occurs
for every 1,000 m gain in altitude.

11. 




Tropical and subtropical
zones: 1,200 m.
Temperate zone:
1,200 to 2,400 m
Cold zone:
2,400 to 3,600 m,
Subarctic zone:
3,600 to 4,400m
Arctic zone:
above 4,400 m

12. Area by %age
Category
Area
(,000 ha)
Agricultural land cultivated
3091
Agricultural land
uncultivated
1030
Forest land
4268
Shrub land
1560
Grass and pasture land
1766
Others
2620
Total
14718
18%
Agricultural land
cultivated
Agricultural land
uncultivated
Forest land
22%
12%
7%
11%
30%
Shrub land
Grass and
pasture land
Others

13. Contribution to GDP
 GDP:
$40.81 billion
(2012 est.)
 Per capita: $1,400
 66 % of the people
is dependent on
Agriculture.
20%
35%
Agriculture
Service
45%
Industry
Tea sector employs more than 1,05,000 people directly and
4,20,000 people indirectly.

14. Exports:
 Export goods:
$1.609 Billion
Carpets,
Clothing,
Jute
Grain,
Herbs,
Tea,
Coffee,
 Main export partners India: 55.7%
United States: 10.1%
Germany 4.4% (2012 est.)


15. Currently, tea exports only account for
approximately 2.4 per cent of Nepal‟s overall
exports, but it is the third leading agricultural
export for Nepal.

16. of Tea Plantation in Nepal

17. History of Tea Plantation in Nepal
 It is believed by historians
that the first tea bushes in
Nepal were grown from
seeds which were given as
a gift by the Chinese
Emperor to the then Prime
Minister of Nepal Junga
Bahadur Rana in 1842.
1816-1877

18. History of Tea Plantation in Nepal
Contd…
 Colonel Gajaraj Singh Thapa planted tea first time in
Ilam District in 1860s.
 Establishment of Ilam Tea Estate in the Hills of Ilam
district in 1863.
 Establishment of Soktim Tea Estate in the plains of
Jhapa district in 1865.
 The first tea factory was built in the town of Ilam in
1878.
 First Tea Plantation at private Tea sector in Terai was
established in 1959 under the name Bhudhakaran Tea
Estate.
 Nepal Tea Development Corporation was established
in1966 by Government of Nepal.

19. History of Tea Plantation in Nepal
Contd…
 From 1978 to the 1990s, various efforts were made by
the Nepal Tea Development Corporation with the
Overseas Development Administration (ODA), to
encourage the participation of small and marginal
farmers in the growth and production of tea as a cash
crop.
 The then King Birendra declared the five districts i.e.
Jhapa, Ilam, Panchthar, Terhathum and Dhankuta of
the eastern development region as 'Tea Zone' in 1982.
 Establishment
of National Tea and Coffee
Development Board on 1993.

20. Tea Zone

21. No. of Registered Tea Estate :
 No. of Tea Processing Factories:

 Orthodox
 CTC
142
54
19
35
No. of Tea Cooperative Societies:
 No. of Registered Small holders:
 Tea consumption

53
9941
 Nepal stands in 13th position for tea consumption in the
world.
 Per capita consumption
350gm
 2.42 cups in a day per person

22. Nepal observes 15th of Baishak, which
usually coincides with 1st May, as
National Tea Day.

23. The highest tea garden of Nepal is
Guranse Tea Estate,
which is located at an elevation of
7325ft (2232 m) in Dhankuta district.

29. Percentage area
by holding
Small
holders
(ha)
Large
Estate
(ha)
Total
(ha)
High
Hills
5139
3133
8272
Low
Plains
2981
6198
9179
Total
8120
9331 17451
47%
53%
Small
holders
Large Tea
Estate

30. Production
by percentage
Total
Production
(MT)
Orthodox
13%
2355
CTC
15954
Total
18309
Orthodox
CTC
87%

31. 20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Production(kg)
Area (ha)

32. Tea Export
12000
10000
8000
6000
4000
2000
0
11060 1,800,000
1,627,588
1,600,000
1,549,891
8889
1,400,000
8600
8498 8499
1,200,000
1,195,319
7000
1,160,593
1,000,000
902,122
800,000
4316 4623
734,285
600,000
438,771
400,000
415,632
884
104,822
200,000
0
Quantity
(MT)

33. Major Countries Importing Nepali Tea
 India (90%)
 Germany (2.8%)
 Czech Republic (1.1%)
 Kazakhstan (0.8%)
 The USA (0.4%)
 Canada(0.3%)
 France (0.3%)
Other
 Hong Kong
 UK
 Austria
 Norway
 Australia
 Denmark
 Holland

34. Nepal ranks 19th position in world tea
production and contributes 0.34% share.

35. Types of Tea Produced in
Nepal
1. CTC
 Produced in Jhapa district of Terai.
 Covers
around
90%
of
domestic
consumption.
 Largely big tea estates are behind CTC tea
production.
 Most of the tea estates have their own
processing factories and some use bought
leaf factories to manufacture tea.
 It is estimated that around 66576 workers are
employed
by
the
tea
estates
as
pluckers, factory workers and in other
functions.

36. Types of Tea Produced in
Nepal
Contd…
1. CTC
 Production(MT)
15954
 Area (ha)
 Tea estates and garden
 Factory
35

10%
Export as %age of Total Production
 Small
farmer‟s %age share
In area
In production
26.62%
28.6%
9179
94

37. Types of Tea Produced in
Nepal
Contd…
2. Orthodox

Orthodox tea is grown in the hills of 6 districts in
eastern
Nepal,
i.e.
Illam, Panchthar, Dhankuta, Terathum and new
areas of Sindhupalchok and Kaski.
 The orthodox tea production accounts for 13% of
total tea production.
 The primary contributors are small farmers who sell
their leaves to buyers in nearby factories or to
those in Darjeeling.
 The climatic conditions in the Eastern hills of Nepal
provide ideal conditions for the production of high
quality orthodox tea.
 Because of the premium price paid to orthodox
tea, 96% of it is exported while little is sold
domestically mostly in souvenir packages suited for
tourists.

38. Types of Tea Produced in
Nepal
Contd…
2. Orthodox
 Production(MT)
2355
8272
69
 Area
(ha)
 Tea estates and garden
 Factory
19

96%
Export as %age of Total Production
 Small
farmer‟s %age share
In area
In production
77%
67.8%

39. Types of Tea Produced in
Nepal
3.Special tea
 Green tea
 Oolong tea
 Herbal tea
 Hand-made black
tea
Contd…

41. Seasonal quality of Nepali orthodox tea
1. Spring Flush
 The
early first flush tea.
 Harvested between February to mid
April.
 Light red colour with yellowish Green.
 Liquor with Gentle taste with aroma and
flavour.
 Accepted by the connoisseurs as
Afternoon tea.

42. Seasonal quality of Nepali orthodox tea
2. Summer Flush
 Harvested
first flush that comes in May
and June.
 This flush comes with consolidated
qualities of tea with bright and shinning
colour.
 With wonderful flavour, taste, aroma and
muscatel.
 Best for late afternoon tea.

43. Seasonal quality of Nepali orthodox tea
3.Monsoon Flush

Tea leaves harvested after June.
 Comes with some change in liquor.
 It looks deep red but shinning
colour, some briskness in taste
including other orthodox qualities.
 This flush has an honour of morning
tea.

44. Seasonal quality of Nepali orthodox tea
4. Autumn Flush
 Harvested
in the Autumn, the last
harvesting season.
 Liquor with strong coppery colour with
other special qualities i.e. aroma, flavour
briskness and muscatel.
 Connoisseurs have suggested Autumn
flush morning tea with some milk in the
liquor.

45. 
In 2011, a total of 166 farmers were certified as
„organic‟ by the Institute for Marketecology (IMO)

In total, these certified farmers accounted for
approximately 250 MT of organic green leaves
which were processed into approximately 53 MT of
tea.

This organic tea is purchased mainly by a German
company and sold all over the world as organic tea
from Nepal, with labels such as: “Suderpaani tea”.

46. Organizations
 Nepal Tea Association
 Nepal Tea Producer's Association
 Himalayan Orthodox Tea Producer's
Association(HOTPA)
 Himalayan Tea Producer's Cooperatives
(HIMCOP)
 Tea Development Corporation
 National Tea and Coffee Development Board

47. Organogram of NTCDB
Ministry of Agricultural Development
National Tea and Coffee Development Board
Regional
Office, Jhapa
Tea Extension
Project
Hile, Dhankuta
Tea Extension
Project
Solma, Terathum
Tea Extension
Project
Lalikharka, Pancht
har
Sub
Center, Chilingden
Regional
Office, Pokhara
Tea Extension
Project Ranipauwa,
Nuwakot
Sub Center,
Ektin
Tea Extension
Project, Mangalbar
e, Ilam
Tea Extension
Project, Jasbire,
Ilam
Tea Extension
Project Fikkal,
Ilam

48. Role of NTCDB
To
extend Tea cultivation throughout the
country.
To provide training and other technical support
to the tea farmers.
To
provide subsidies on planting and
processing materials.
To co-ordinate among the national and
international bodies which are directly or
indirectly related to the tea industry.
Marketing of Nepal Tea in the international
market.

49. Symbol of quality tea from the top
of the world

51. INGOs helping Tea Industry in Nepal
 USAID
 DFID
 DANIDA
 jiCA
 GTZ
 HELVETAS
 Winrock
International

52. 





Quality and standard requirements imposed by
international trading partners.
Lack of proper branding and marketing.
Limited R&D investment.
Labour shortage.
Lack of electricity forces the sector to opt for
different energy sources, leading to increases
in the cost of production.
Lack of adequate infrastructure.

53. Due to the lack of infrastructure, farmers are
forced to sell 90 per cent of their products to
Indian factories, which are then sold in the
world market as Darjeeling Tea.

54. “Darjeeling annually produces less than 10
million kilos of tea. Sales figures indicate
almost 40 million kilos are sold as
Darjeeling.”
-World Tea News

56. Tea Cultivation is projected to expand to
40,000 ha in 10yrs and around 45 million kg
of tea is expected to be produced.

57. AMBITION FOR 10 YEARS
Plantation area and total Production.
SN
Type of Tea
Area (Hectares)
Total Production
(million kg)
1
Orthodox
30133
30.13
2
C.T.C.
10652
15.98
Total
40785
46.11

58. AMBITION FOR 10 YEARS
Domestic Consumption
SN
Type of Tea
Domestic
Consumption
(million kg)
Value (million)
1
Orthodox
3.01
13.20$
2
C.T.C.
9.40
20.59$
Total
12.41
33.79$

59. AMBITION FOR 10 YEARS
Export
SN
Type of Tea
Export
(million kg)
Value
(million)
1
Orthodox
27.11
197.95$
2
C.T.C.
6.57
14.40$
Total
33.68
212.35$

61. Tea Research Laboratory has been
established in Fikkal, Ilam in 2011.

62. In July, 2013 Government of Nepal has
sanctioned budget to establish Auction
Center in Jhapa district.