Post on 19-Aug-2015
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