Excerpt from

20 September 2002

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Weak marketing ails tea exports from Nepal
Himalayan News Service
Kathmandu, September 19,
Experts and entrepreneurs emphasised the need to increase marketing of Nepali tea in the international market, saying the produce can earn huge foreign currency as well as generate a massive employment opportunities.
They made these remarks while addressing the Tea Symposium-2002, organised by the Himalayan Orthodox Tea Producers' Association (HOTPA), Nepal Tea Association (NTA) and Nepal Tea Planters Association (NTPA) at the ongoing Agro Expo-2002, here on Thursday.
They also pointed out the need for effective implementation of the National
Tea Policy 2000, promoting domestic tea varieties and evolve special packages
to preserve the small and medium-scale industries.
Speaking on the occasion, Dr Prakash Shran Mahat, member of the National Planning Commission (NPC), expressed hopes that with the effective implementation of the National Tea Policy 2000, Nepali tea industry and people associated with it will largely benefit.
Naresh Kumar Burma, advisor of Nepal Tea Planters Association, presented a paper on the current status of tea industry in Nepal.
He said the domestic tea industry is passing through a crisis due to the deteriorating security situation and other factors, including the new loan provisioning scheme under the recently implemented Monetary Policy.
Presenting a paper on hill tea industry, Chandra Bhusan Subba, executive director of HOTPA said Nepali orthodox tea has a great potential in the international arena but lack in promotional campaigns. "As almost cent per cent of Nepali orthodox tea is being exported, proper marketing efforts are key to retain the image of one of the major foreign currency earners for the country," he added.
According to the National Tea and Coffee Development Board, Nepal produces two types of tea — CTC, processed from leaf harvested in gardens on the plains, which is granular, fine-cut tea that produces a thick liquor.
The other variety, orthodox tea culled from shrubs grown on the hills, produces a lighter, more fragrant liquor with distinct seasonal flavours. Nepal already has 11 factories producing orthodox tea, and 18 estates that produce CTC tea.
Till now, 12,365 hectares of land have been covered by tea estates, while the production data for the year 2001-02 stands at 6,638,082 kg.
Rajendra Kumar Dhakal of Nepal Tea Association presented a paper on the domestic tea industry. He informed that the annual consumption of tea in Nepal is 7.8 million kg, which comprises mostly of CTC varieties and only four per cent of orthodox tea.
With the advent of Nepali tea brands in 1970s, Indian brands that used to dominate the domestic market, have gradually been replaced, Dhakal added.
"Now only 10 per cent of the total demand is being met through Indian tea brands. Domestic supply is likely to become self-sufficient by 2003," he added.