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.
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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 |