- Supporting Organization: Enabling Export Environment of Tea Sectors
- Supporting Organization Logo:
- Year: 2018-2019
- Name of Organization: Central Tea Cooperative Federation Limited (CTCF) Nepal
- Organization Address : Ilam Municipality 9, Sera Ilam
- Project implementation areas: Ilam, Panchthar, Dhankuta, Taplejung and Jhapa
- Project Period: 18th Sept 2018 to 30 April 2019
- Budget:
NPR 500,000.00
1.1 Background:
Tea farming in Nepal was started in 1920 B.S. (1963 A.D) in Ilam by Gajaraj Thapa, and since 2028 B.S (1971 AD) information available reveals that small farmer scale tea farming was scaling up in various districts including Ilam. In the year 2039 B.S. (1982 AD) five districts namely Ilam, Jhapa, Panchthar, Dhankuta, and Terhathum of Eastern Development Region were declared the Tea state and along with which there was increase of involvement of farmers in tea farming, and the involvement of farmers was termendiously increased when National Tea Policy 2057 was decleared by the government. With this in various districts establishment of farmers tea group, cooperatives took place. Currently tea is professionally cultivated in 14 districts of Nepal. According to Professional Tea Farmer Survey 2075 conducted by the National Tea and Coffee Development Board, tea is cultivated by 9,127 individual and tea garden within 12,067 hector of area. 100,080 metric ton tea is produced in Nepal annually. Around 18,180 individuals including 8,807 females are involving in tea farming and 3,244 people including 1,327 female are getting direct employment by the tea sectors. Data from ITC (International Trade Center) shows that US$ 27,952 thousands of tea have been exported by Nepal in 2017 out of which 88.2% tea exported to India.
Tea has been an emerging subsector in the economy of Nepal over the past two decades and scores well on several socioeconomic goals: the sector employs approximately 70,000 people directly and indirectly for an average of 30,000 full-time equivalent jobs in both remote mountain areas and urban centers, ranging from low-skilled workers – a majority of whom are women – to technical workers and engineers. (Nepal Export Strategy Tea 2017-21). Despite promising export potential, the development of the tea sector is hindered by multiple problems. Firstly, exports are overly dependent on Indian tea traders, limiting the willingness of sector stakeholders to collaborate. Secondly, logistics issues and cumbersome market access regulations reduce access to international markets: the sector faces serious constraints to increasing overseas exports in terms of quality consistency and compliance difficulties with maximum residue levels (MRLs) of agrochemicals. Thirdly, while the sector has strong political backing, technical support lacks financial resources and the private sector relies heavily on foreign technical expertise to improve production quality and branding. Finally, the sector is fragmented, with multiple actors – from experienced tea exporters to new farmer-processors – having difficulty developing a common approach to respond to their respective interests. (Nepal Export Strategy Tea 2017-21)
There are 31 tea cooperatives processing factory and more than 100 small and medium sized (SMEs) who are processing varieties of tea and supplying to the national and international market. Those cooperative and SMEs are lacking of technical knowhow on post-production management like sampling, invoicing and tea tasting for quality control. Food safety and hygiene is the deemed requirement of foreign market but on the contrary cooperative and SMEs have lack of knowledge that are limiting export of qualitative teas.
Nepal Government has trade marks for orthodox tea in Nepal called Nepal Tea Quality from Himalaya which is under the ownership of National Tea and Coffee Development Board. The logo can be used by any firm who requires minimum standards of logo as certification trade mark. However cooperative and SMEs are not more clear on the standard and guideline to operate the logo. Government of Nepal with the collaboration of International Trade Centre (ITC) prepared Nepal Export Strategy 2017-21 for teas. With the vision of "Develop Himalayan Nepali tea quality and diversify trade to support sustainable, eco-friendly, socioeconomically inclusive development" the Strategy focuses on 1. Improve the quality of green leaves 2. Improve quality and compliance to meet market demand 3. Reinforce institutional coordination to manage quality, improve market access and develop Nepali tea varieties and 4. Strengthen the national brand and value addition to increase market diversification. NTCDB is the leading institutions whereas CTCF Nepal, HOTPA, MoAD, NTPA, STAN are the implementing partner of the strategy.
Central Tea Cooperative Federation (CTCF) Ltd was on 16 September 2010 under Cooperative Department, Agriculture and Cooperative Ministry as per Cooperative Act of Nepal. It is the apex umbrella organization of tea cooperatives in Nepal. It covers 15 districts of Nepal and has 101 member cooperatives including 5 District Tea Cooperative Federation. Arround 6500 small holder tea farmers are affiliated with CTCF Nepal. CTCF Nepal is supporting cooperative and SMEs for their quality production, marketing and institutional development by providing various types training, market linkage, and other services. CTCF Nepal is one of the member organization of the stering committee for the trade mark Nepal Tea Quality from Himalya. Similary CTCF Nepal is the implementating partner of Nepal Export Strategy of Tea 2017-21. Hence CTCF purposed a project entitled "Enabling export environment of tea sectors" to support and enable the export environment of the tea sector of Nepal. The project actvities were designed based on the need of SMES and Export Strategy tea 2017-21. In collaboration with Ministry of Industries, Commerce and Supplies, cooperatives, SMEs NTCDB, Local Government, Farmers and tea related stakeholders, CTCF Nepal successfully completed all the project activities.
1.2 Overall Objective
To enable quality tea, building marketing network and creating awareness on quality tea logo
1.4 Activities
Activity 1: Post production management training focusing on food safety, sampling, invoicing and tea tasting:
Post production handling training was conducted 9-12 Falgun 2076 in Ilam with the financial support of Ministry of Industries, Commerce and Supplies. In the opening session general secretary Mr. Rabin Rai explained the purpose and the significance of the training to the participants. Representative from Ilam Chamber of Commerce Mr Babul Bhaktaraj also addressed to the training participants for their effective learning. Since the training was residential training it was conducted 9:00 a. to 5:00 pm every day. 21 participants including representative of CTCF Nepal took active participation to the training.
Activity 2: B2B Interaction program with Indian buyer:
B2B interaction program with Indian buyer could not be conducted due to lock down caused by COVID 19 pandemic.
Activity 3: Awareness campaign on Standards of Nepal Tea Quality from Himalaya to SMEs, Cooperatives and Tea Stakeholders:
Government of Nepal has registered a tea brand called Nepal Tea Quality from the Himalaya which is regulated by the National Tea and Coffee Development Board of Nepal NTCDB. One logo implementing committee has been formed where CTCF Nepal is one of the member organizations. For the effective use and regulation of the logo a guideline has been prepared to get the logo to the processors, marketer and producers. The guideline has set up certain standards to be followed by the producers, processers and marketers to use that logo. However the small processors, cooperative, marketers have no idea on the standard set by the committee for the use of logo. Hence an awareness programme on Standards of Nepal Tea Quality from Himalaya to SMEs, Cooperatives and Tea Stakeholders was conducted 1-2 Chaitra 2076 in Ilam with the financial support of Ministry of Industries, Commerce and Supplies. In the opening session general secretary Mr. Rabin Rai explained the purpose and the significance of the training to the participants. Since the training was residential training it was conducted 9:00 a. to 5:00 pm every day. 21 participants including representative of CTCF Nepal took active participation to the training.
1.5 Result/Outcomes
The following outcomes are expected after the project implementation
- 22 Cooperatives and SMEs have improved their knowledge on food and safety, sanitation, hygiene standards for making marketable qualitative made tea like GMP/HACCP, Hazard identification.
- 21 participants got knowledge on Nepal Tea Quality from the Himalaya Standard to be followed by Producer, Processers, and Marketer.
- Trained participants got knowledge on making professional tea product sample for tea buyers, methods for invoicing to fulfill the export requirement.
- Trained participants got knowledge on tea tasting skill for quality control and production management.