India's new testing rules stall Nepali tea exports and raise costs for traders
A new Tea Board procedure requires laboratory testing for every truck and every tea shipment from Nepal, sharply increasing delays, storage pressure and export costs.
Nepal's tea industry has been thrown into a new trade crisis after India's Tea Board introduced stricter import procedures for tea arriving from Nepal. The new standard operating procedure took effect on May 1 and requires mandatory laboratory testing for every truck and every tea consignment crossing into India. Exporters say the change has effectively brought shipments to a standstill.
Under the previous system, one test report remained valid for 15 days or could cover as many as 10 truckloads. Now each truck must undergo separate testing at an Indian government-approved laboratory. The fee is INR 11,120 per truck, and the report can take at least two weeks to arrive. Until a shipment receives a clearance certificate confirming it meets all standards, it cannot be sold in the Indian market or re-exported to third countries.
The new rules also require consignments to be stored separately while awaiting final clearance. If a tea shipment fails the test, it will not receive permission under any circumstances and the importer is notified immediately. Importers who dispute the first result can request a retest using a reserve sample held by the Tea Board, but they must apply online within 48 hours and cover all costs themselves. The retest fee is INR 15,000 per sample, excluding GST.
Industry representatives in Nepal say India has not officially banned imports but has made exports practically impossible. Shiv Kumar Gupta said shipments continued until April 30, but once the new procedure came into force, traders stopped loading goods. He said separate testing for every vehicle has made the process highly complicated, with test reports taking seven to 14 days to return.
Exporters also point to logistical damage at the Panitanki customs point, where they say storage facilities for tea-laden trucks are inadequate. Keeping tea in trucks or under open skies for days can affect quality. That in turn has pushed Indian buyers into a wait-and-watch position: they are unwilling to make payments before test reports arrive and do not want to risk having to return or destroy a shipment if it fails.
The disruption is already affecting pricing and market timing. Tea exported to India had been selling at about INR 100 to 105 per kilogram, while on Nepal's domestic market prices range from NPR 200 to NPR 250 per kilogram depending on quality. The premium second-flush tea has not yet been exported this season. Nepal's National Tea and Coffee Development Board said it has already submitted a written report to the relevant ministry after consulting stakeholders about the serious effects of the new Indian rules.