NEPAL – Government to establish separate entities for tea and coffee

KATHMANDU – The Government of Nepal is set to establish separate entities to look after the tea and coffee sectors. Currently, the National Tea and Coffee Development Board (NTCDB) deals with affairs related to both tea and coffee.
“The Ministry of Agricultural Development has decided to form separate institutions to look after tea and coffee and has sought the Cabinet’s go-ahead,” said Jay Mukunda Khanal, secretary at the ministry. “However, we are yet to decide whether to form two separate boards or committees for the purpose,” he said.
Khanal said the ministry was now preparing separate policies for the development of tea and coffee. “We will hold intensive discussions with the private sector to determine the structures of these two bodies.”
The ministry said it decided to form separate organizations following a rise in export potential in recent years. “A single body might not be able to regulate the sector effectively as both the production area and exports of the products have grown immensely,” said Khanal, highlighting the need for forming separate bodies.
Tea and coffee are two of the country’s major export items. The NTCDB’s records show that exports have swollen several-fold over the last decade. In 2012-13, Nepal earned Rs 2.04 billion (US$20 million) by exporting 10,709 tonnes of tea compared to Rs 53.9 million from 193 tonnes in 2002-03.
Similarly, coffee exports jumped to Rs 27.6 million in 2005-06 from Rs 638,000 in 1995-06.