Tea Plantation in Nepal

Presented By

Gaurab LuitelNational Tea and Coffee Development Board

Kathmandu, Nepal

Brief Introduction of NepalOfficial name: Democratic Republic of

NepalCapital: KathmanduLanguage: NepaliCurrency: Nepalese Rupees.

1US $=approx 80 NRsPopulation: 26.6 millionDensity: 180 per sq. kmReligion: Hinduism(81%),

Buddhism (10%), Islam (5%)

Christanity(4%)MajorLandmarks: Birthplace of Lord

Buddha. Country of Mount

Everest.

LocationLatitude: 26 ° 12' to 30 ° 27' North

Longitude: 80° 4' to88° 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.

Location

Geographical Division:Himalayan region (19% ): 4500m to 8848m Hilly region (64%): 300m to 4500mTerai region (17%): 60m to 300 m

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

altitude.

Climatic zones

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

Land use pattern

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

22%

7%

30%11%

12%

18%

Area by %age

Agricultural land cultivatedAgricultural land uncul-tivatedForest landShrub landGrass and pas-ture landOthers

GDP: $40.81 billion (2012 est.)

Per capita: $1,400 66 % of the people

is dependent on Agriculture.

35%

45%

20%

Contribution to GDP

AgricultureServiceIndustry

Economy

Tea sector employs more than 1,05,000 people directly and 4,20,000 people indirectly.

Exports: $1.609 Billion Export goods: Carpets,

Clothing, JuteGrain, Herbs, Tea,Coffee,

Main export partners India: 55.7%  United States: 10.1%  Germany 4.4% (2012 est.)

Economy

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.

History of Tea Plantation in

Nepal

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

History of Tea Plantation in Nepal

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.

Contd…

History of Tea Plantation in Nepal

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.

Contd…

Tea Zone

Tea Facts of Nepal

No. of Registered Tea Estate :142

No. of Tea Processing Factories:54

Orthodox 19 CTC 35

No. of Tea Cooperative Societies: 53 No. of Registered Small holders:

9941 Tea consumption

Nepal stands in 13th position for tea consumption in the world.

Per capita consumption 350gm 2.42 cups in a day per person

Nepal observes 15th of Baishak, which usually coincides with 1st May, as

National Tea Day.

The highest tea garden of Nepal is Guranse Tea Estate,

which is located at an elevation of 7325ft (2232 m) in Dhankuta district.

Plantation Area

47%53%

Percentage area by holding

Small holdersLarge Tea Estate

Small holder

s(ha)

Large Estat

e(ha)

Total(ha)

High Hills

5139 3133 8272

Low Plains

2981 6198 9179

Total 8120 9331 17451

Production

Total Production

(MT)

Orthodox 2355

CTC 15954

Total 18309

13%

87%

Production by percentage

OrthodoxCTC

Plantation and Production by year

2001

/02

2003

/04

2005

/06

2007

/08

2009

/10

2011

/12

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

02,000,0004,000,0006,000,0008,000,00010,000,00012,000,00014,000,00016,000,00018,000,00020,000,000

Production(kg)Area (ha)

Tea Export

0

2000

4000

6000

8000

10000

12000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

884

4316 4623

7000

8600 8889 8498 8499

11060

104,822

438,771415,632

734,285

902,122

1,160,5931,195,319

1,549,8911,627,588

Quantity (MT)

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%)

OtherHong KongUKAustriaNorwayAustraliaDenmark Holland

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

Types of Tea Produced in Nepal1. 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.

Types of Tea Produced in Nepal1. CTC Production(MT) 15954 Area (ha) 9179 Tea estates and garden 94 Factory 35 Export as %age of Total Production 10% Small farmer’s %age share

In area 26.62%In production 28.6%

Contd…

Types of Tea Produced in Nepal2. 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.

Contd…

Types of Tea Produced in Nepal2. Orthodox Production(MT) 2355 Area (ha) 8272 Tea estates and garden 69 Factory 19 Export as %age of Total Production 96% Small farmer’s %age share

In area 77%In production 67.8%

Contd…

Types of Tea Produced in Nepal

3.Special teaGreen teaOolong teaHerbal teaHand-made black

tea

Contd…

Seasonal quality of Nepali orthodox tea

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.

1. Spring Flush

Seasonal quality of Nepali orthodox tea

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.

2. Summer Flush

Seasonal quality of Nepali orthodox tea

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.

3.Monsoon Flush

Seasonal quality of Nepali orthodox tea

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.

4. Autumn Flush

Organic Tea

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”.

Organizations

Nepal Tea Association Nepal Tea Producer's AssociationHimalayan Orthodox Tea Producer's

Association(HOTPA) Himalayan Tea Producer's Cooperatives

(HIMCOP)Tea Development CorporationNational Tea and Coffee Development Board

Organogram of NTCDBMinistry of Agricultural Development

National Tea and Coffee Development Board

Tea Extension Project

Hile, Dhankut

a

Tea Extension Project Solma, Terathu

m

Tea Extension Project Lalikhar

ka, Panchth

ar

Tea Extension Project Ranipau

wa, Nuwakot

Tea Extensio

n Project, Mangalbare, Ilam

Tea Extensi

on Project, Jasbire,

Ilam

Tea Extensi

on Project Fikkal,

Ilam

Role of NTCDBTo 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.

Symbol of quality tea from the top of the

world

INGOs helping Tea Industry in Nepal

USAIDDFIDDANIDAjiCAGTZHELVETASWinrock

International

Major challenges

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.

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.

“Darjeeling annually produces less than 10 million kilos of tea. Sales figures

indicate almost 40 million kilos are sold as Darjeeling.”

-World Tea News

Projection

Tea Cultivation is projected to expand to 40,000 ha in 10yrs and around 45 million kg

of tea is expected to be produced.

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

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$

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$

Recent efforts

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

In July, 2013 Government of Nepal has sanctioned budget to establish Auction

Center in Jhapa district.

THANKYOU