Tea Exports Drop 41% After Previous Year’s 87% Surge

Nepal’s tea exports saw a sharp reversal in FY 2025/26, falling by 41% after posting an extraordinary 87% surge in the previous year. According to trade statistics, exports dropped from Rs. 553.2 million last year to just Rs. 326.6 million this year, reflecting weakening international demand and market volatility.

This decline comes as global buyers shifted focus to larger producers like India and Sri Lanka, where competitive pricing and established distribution networks continue to dominate. Nepalese tea, though known for its high quality and unique flavors, often struggles with branding, certification, and consistency in supply, which makes it less competitive in volatile global markets.

The drop also underscores the risks of overreliance on a single-year boom, as the exceptional growth in 2024/25 proved unsustainable without long-term market reforms. Experts argue that Nepal must now invest in premium branding (organic, specialty teas), diversify export markets, and strengthen farmer cooperatives to ensure steady earnings for its tea industry.