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Home»Explore by countries»India»Nepal tea industry shutdown puts 60,000 workers at risk after India tightens export rules – Asia News Network
India

Nepal tea industry shutdown puts 60,000 workers at risk after India tightens export rules – Asia News Network

By IslaJune 23, 20263 Mins Read
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June 23, 2026

KATHMANDU – The tea-harvesting season in Jhapa’s Giribandhu Tea Estate usually begins with activity from dawn. Workers move through the fields plucking fresh green shoots as the estate echoes with chatter and routine movement. This year, the gardens are silent.

Following India’s recent tightening of export procedures for Nepali tea, more than 50 factories and estates in Ilam and over 30 in Jhapa have halted operations. The shutdown has affected an estimated 60,000 workers and staff across eastern Nepal, with daily wage labourers among the hardest hit.

At Giribandhu Tea Estate, 58-year-old Amber Bahadur Tamang said the closure has left his household without income. “Keeping the household running has become a massive struggle. This was our only source of income, and now it’s gone,” he said.

Workers say even short breaks in employment quickly turn into a crisis. Khinamaya Bastola, another worker at the estate, said uncertainty over food has become constant. “We used to work all day just to put food on the table in the evening. Now there is no work, and I am constantly worrying about how we will manage to eat,” she said.

At Tokla Tea Estate, worker Hari Bahadur Darji said the impact has fallen most heavily on labourers. “Industrialists, traders and the government may have cushions or alternatives, but workers have nothing except daily jobs,” he said.

He added that many families have started borrowing money or buying essentials on credit, while some younger workers are heading to India or urban centres in search of work.

At Kalika Tea Estate, 58-year-old Parman Murmu said the shutdown has wiped out both his and his wife’s combined income. “A week’s work used to keep us afloat. Now that stream is completely blocked,” he said.

Workers said the crisis is spreading beyond individual households, affecting transporters, small traders and local businesses tied to the tea economy. “When the estates cannot support us during a crisis, the state needs to step in,” said Hari Bahadur Limbu, another worker at the estate.

At Baibhav Tea Estate, Shantiwoti Rajbanshi said basic survival has become the priority. “The estate provides us huts to live in. But right now, our biggest worry is how we are going to feed ourselves,” she said.

The shutdown has come during the peak “first flush” harvest period. Tea bushes are now laden with fresh shoots, but with no plucking activity, leaves are beginning to wither.

Workers and industry stakeholders are calling for urgent diplomatic engagement to restore exports and for immediate relief measures to support affected households.

The disruption began in Ilam on June 15 and spread to Jhapa last Thursday after Indian customs authorities introduced additional checks on Nepali tea shipments.

According to the Nepal Tea Producers’ Association, factories have become financially unviable after consignments were held at the border under expanded quality testing procedures linked to a revised Standard Operating Procedure issued by the Tea Board of India.

Data from FNCCI Koshi Province shows Nepal produces about 27.4 million kgs of tea annually across nearly 10,000 hectares, with more than 25 million kgs exported to India.

The federation warned that rising inventory backlogs and blocked cash flow could trigger long-term damage to the sector if the shutdown continues.



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