His Majesty's Government has approved and implemented National Tea Policy 2057 (2000 AD) as per the intention in National Tea and Coffee Development Board Act,2049(1992) for the development of Tea as a reliable source of income in the enhancement of opportunities of employment and earning of foreign currencies by the increase of private sector in the production, processing and commercial transaction of Tea with the sustainable and systematic utilization of available resources and opportunities in the Country.  Policies and Working Policies are enlisted in the following paragraphs.

1.  The Banks shall provide loans as priority credit on the minimum interest rates for tea cultivation and Processing.
    

2. After the registration of industry for the tea cultivation , the Banks shall provide loans up to 80 percent of the total project cost.
    

3.  A grace period of up to 7 years for orthodox and green tea in the hilly region and 5 years for C.T.C. tea in the terai shall be given on the loan provided for tea cultivation.
    

4. The interest on loan shall not be capitalized in grace period.
    

5. Income tax shall not be levied within the grace period.
    

6.  The principal and interest amount of the loan invested on the tea cultivation shall have to be fully paid up within 10 years from the end of grace period.
    

7. There shall be an exemption of 75 percent land registration fee to be levied while purchasing land for tea cultivation.
    

8. The Board shall recommend for exemption of land revenue on the land cultivated for tea.
    

9. A team comprising of members of Ministry for Forest and Soil Conservation, Ministry of Agriculture and Cooperative and National Tea and Coffee Development Board shall recommend such Land to His Majesty's government through Board. And such lands may be awarded on lease, on such recommendation, up to a period of 50 years for tea cultivation.
    

10. The amount received through lease shall be deposited in the following funds:

    a) 50 percent in the revenue of His Majesty's Government

    b) 50 percent in Tea Development Fund.

11.  A capital grant shall be provided for irrigating the tea cultivation as awarded to other crops. And a custom duty shall be levied at the same rate as that of agricultural equipments while importing pipe and other equipments required for irrigation.
     

12. Custom duty on the importation of equipments required for tea processing industry shall be levied at the same rate of agricultural equipment.
     

13. His Majesty's government shall give priority for infrastructure development like road, irrigation, electricity, communication, education and health in the commercially tea cultivated areas.
     

14. An arrangement shall be made to avail the fuel wood required for the operation of tea industry directly from the concerned Forest supply Committee fixing the periodic quantity to entrepreneurs in a way not adversely affecting the local supply, and the trees planted within the tea garden may be used by the tea garden itself.
     

15. The chemical fertilizers, pesticides, weedicide, and Agricultural equipment etc. required for the tea business shall be allowed to import from other Countries.
     

16. A Tea Development Fund shall be established from the cess to the received from tea entrepreneurs, grant to be received from His Majesty's Government, amount to be received from International Non-Governmental Organization and foreign grants or assistance. And such funds shall be utilized in the development and extension of tea with the participation of private sector.
     

17. Following activities shall be given priority to encourage Land consolidation.

    a) Arrangement of low interest loan shall be made to purchase land for tea cultivation.

    (b) The extension of land consolidation through tea cultivation shall be encouraged lawfully

18. On the basis of feasibility study, any area of at least 3000 Ropanis for tea cultivation shall be declared as Tea Area and the infrastructures like electricity, communication service, and agriculture. Road shall be given priority to develop in such areas.
     

19. The information received from the feasibility study of tea market shall be made available to tea entrepreneurs.

1. The auction system shall be developed with the participation of private sector for the introduction of tea in international market system. Necessary infrastructure shall be developed in this regard.
    

2. Tea export promotion activity shall be mobilized in coordination with Agricultural Business promotion and Stastical Division of Ministry of Agriculture, Agricultural Enterprise Centre  ( Federation of Nepalese Chamber of Commerce and Industry ), Royal Nepalese Embassies and Consulates. The information Pertaining to production, quality , quantity and production areas shall be published under the Ministry of Tourism.
    

3. The Customer duty on packing materials to be imported for export of tea shall be levied of the same rate as of agricultural equipment.
    

4. While exporting tea, in case it is to be exported in quantity equal to that of one container, it shall not be required to open the letter of credit to that effect.
    

5. The facility to be received in export to other countries shall be provided in the export to India as well.
    

6. Encouragement shall be made towards timely reform of the packing industry in order to develop and establish domestic tea brand.
    

7. For sale and export the value added packed tea shall be encouraged than to open tea.
    

8. The participation of the small and cooperative tea entrepreneurs in trade fair , trade exhibition, workshop, seminars by Tea Development Fund.

The Board shall perform following functions for the effective implementation of this policy.

1. To render technical advice and assistance by conducting necessary study and research in relation to tea cultivation and to import the improved tea sapling from the aboard in order to arrange for sale and distribution of it by increasing the quantity.
    

2. To award grant to small farmers in order to transport the tea cutting.
    

3. To render free technical service to small and cooperative tea farming.
    

4. To recommend to concerned agencies in relation to the awarding of concession of registration fees, Land ceiling, land revenue etc, availing of custom facilities in the import of machinery, irrigation equipment, packing materials, steel structure, letter of credit facilities and make field activities in relation to fixing of national emblem after making field inspection.
    

5. To recommend loan, pesticides, Chemical fertilizers, agricultural equipment and fuel necessary for tea business.
    

6.  To keep records about tea entrepreneurs of the country.
    

7.  To stop the facilities provided if found not performed as per this policy after conducting regular inspection and supervision.
    

8. To arrange for awarding prizes and letter of appreciation annually for best producers, processors, tea packing industry and exporters in order to encourage the tea business.
    

9. In order to provide information oriented materials for the development of tea business to keep up-to-date records of tea covered area, production information, auction quantity producer, processor, exporter, importer and researcher, and to provide such information to His Majesty's Government and Concerned parties on periodic basis.
    

10. To maintain relation with tea related international agencies, enter into agreement and perform other joint effort with the permission of His Majesty's Government.
     

11.  To develop Board as an autonomous entity along with the participation of private sector for the continuous development of tea business. The Board shall provide different recommendation and advice including awarding of land on lease for tea production and processing, and the Board shall realise fees for providing such services with the approval of His Majesty's Government.
     

12. To collect national as well as international information covering study and research, market development of tea, and to provide information to tea entrepreneurs.
     

13. To cause to arrange in providing statistics and other related information on regular basis by all tea related agencies and to arrange to stop for business malpractices of such information. To utilize such information in decision making, research analysis and market promotion.
     

14. To engage in human resources development and research being affiliated with universities/trade schools.
     

15. To perform in coordination with Export Promotion Committee.
     

16. In the operation of Tea Development Fund, to maintain majority of persons having high investments in the Fund.
     

17. To render necessary suggestions on time to time to His Majesty's Government for the effective implementation of the provision mentioned in this Policy.

 

 

 

1. A tea Research and Training Centre shall be established with the participation of Nepal Agriculture Research Council, international cooperation and private sector.
    

2. To arrange for domestic and foreign training under Tea Development Fund for small farmers, tea farmers and the manpower working in tea cooperatives. And for other entrepreneurs, arrangement shall be made to bear such costs by themselves.
    

3. No income tax shall be levied on investments made by entrepreneurs on training in order to encourage manpower development.
    

4. An arrangement of training shall be made on time to time basis to technicians extending their services.

1. A minimum custom duty shall be levied on the import of machineries for packaging industry as it is beneficial to country to sell the tea on local market or to export after getting value added in it.
    
2. The duty levied on the packing materials to export Nepalese tea shall be refunded under Duty Draw Back facility.
    
3. An income tax holiday of five years shall be awarded to industries established with a view of exporting of tea and packing industry having such objective.

His Majesty's Government has approved & implemented National Coffee Policy 2060 (2003) as per the intention in National Tea & Coffee Development Board Act 2049(1992) for the development of Coffee as a reliable source of income in the enhancement of opportunity of employment and earning of foreign currency by the increase of private sector in production, processing & commercial transaction of Coffee with the sustainable & systematic utilization of available resources & opportunities in the country. Objectives, Policies & Working Policies are enlisted in the following paragraphs.

2. Policies & working Policies.

Production & Processing

4. Institutional Arrangements

·        Entrepreneurs, farmers, industrialists and employees involved in national coffee industry shall be encouraged to participate in coffee related national & international seminars, coffee fairs & exhibitions.

·        Board will continuously focus on research work of coffee and technological development with the co-ordination with private sector as well national and international organizations.

·        To maintain and improve the quality of coffee, appropriate improvement works will be carried out.

·        Board will recommend to the concerned departments to obtain the required facilities for coffee trade promotion.

·        Provisions for educational tours, training & higher educational programs will be commenced for the development of coffee industry in the country.

·        Coffee Information System will be erected on central level for the collection & analysis of the information like coffee plantation area, production, export, import, sales, processing etc.

·        Coffee related individuals shall be encouraged to participate on coffee marketing, coffee development planning, rules /regulation formation.

·        Board will inspect, monitor & evaluate the coffee farmers & traders so as to award the best performer.

·        Until the market of coffee get competitive in national perspective, pricing committee consists of coffee farmers/ cooperative & representatives from coffee professionals.

·        Coffee farming & processing industries can be established with foreign investment, co-operatives & any organizational financial support.

5. Coffee development Fund

·        Coffee development fund shall be established.

·        Above mentioned fund shall be funded through the following sources:

1.      Amount received from national/international organisations & other fund received for the purpose of R&D

2.      Amount received from leased land.

3.      Grant received from government for Coffee Development Programs.

4.      Consultation fees received by board.

·        Coffee Development Fund will be operated according to the approved directives by committee.

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