Nepal’s coffee export experiences modest gains

Imports of coffee, on the other hand, has increased drastically showing rising demand from coffee lovers in the country
Photo: Nepal Tea and Coffee Development Board

Nepal saw a slight increase in its earnings from coffee exports during fiscal year 2079/80, amounting to Rs 130.44 million – marking an increase of Rs 13.35 million (by 11.40%) from the previous fiscal year. Nepal exported 77.86 tonnes of coffee last fiscal year.

Meanwhile, coffee imports surged by a staggering 155% reaching Rs 325.86 million from Rs 127.59 million. Nepal imported 450.29 tonnes of coffee last fiscal year.

This growth in exports and imports of coffee can be attributed to a slight growth in production volume along with a dramatic rise in domestic demand respectively.

Read our brief on opportunities for coffee-based MSMEs here

According to the National Tea and Coffee Development Board (NTCDB), Nepal’s coffee sells for prices two to three times higher than their imported counterparts owing to its superior quality and aroma, fetching around $16 per kilogram in the international market.

Nepal Trade Integration Strategy 2023 has listed coffee as one of the export commodities. The strategy came into implementation this year.

The strategy stresses the need of attracting the younger generation to coffee farming as well as the necessity for increased investments in the sector to boost production and meet the rising global demand for Nepali coffee.

Meanwhile, the board has revised its prices minimum support prices (government-guaranteed prices for farmers) for fresh cherry coffee, parchment and dry cherry coffee beans, which is set to take effect from November 24 as follows:

 

Coffee Grade New price per kg (In Rs) Previous price per kg (In Rs)
Fresh cherry coffee A 100 95
B 90 85
Parchment A 500 475
B 450 420
Dry cherry coffee A 200 170
B 150 115