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The total area under tea plantation is estimated at 16000 hectares right now with the production volume of 137 million kgs and It's providing direct employment to 25 thousand people. The climatic conditions are suitable for Orthodox tea in hills range and CTC (Crush-Tear-Curl) at Terai. Nepal is trying for export quality green tea.
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| Orthodox | C.T.C |
Nepal Tea Development Corporation inherited the Historical Ilam & Soktim Tea Estates and established 5 new tea gardens since 1985 occupying 951 hectares of Land and by now the management is privatized.
Tea in the private sector comprises of small farmers, bought leaf factories and big tea gardens with tea processing factories.
Both of big and small Tea gardens which are in the private Tea Estates and the area is estimated to be about 16000 hectares with an annual production of 13688 M.T. of made tea registered out of 140 Tea Estate would have contribute to 85 % of the National production volume. Nepal has 40 Tea processing factories in private sectors. They produce both orthodox and CTC Tea.
Bought Leaf Factories
Bought Leaf factories do not have their own Tea Plantation and depend on the small farmers for the green leaves to run their factories. Further a rapid increase in Tea area at small holders level is anticipated due to the market of their production.
Packaging industries
Basically there are two kinds of tea packaging industries operating in Nepal. The first one being the private Estate owing tea packaging unit of itself and second are the ones who operate their Industry buying bulk from private tea estates and the tea imported from outside.
Tea Plantation & Production
| Financial Year | Plantation (Hecars) | Production (Kilograms) | |
| B.S | A.D | ||
| 2051/52 | 1994/95 | N/A | 196403.00 |
| 2052/53 | 1995/96 | N/A | 2737329.00 |
| 2053/54 | 1996/97 | 3501.80 | 2905942.00 |
| 2054/55 | 1997/98 | 4515.00 | 3018571.00 |
| 2055/56 | 1998/99 | 10249.60 | 4492998.00 |
| 2056/57 | 1999/00 | 10249.60 | 5085237.00 |
| 2057/58 | 2000/01 | 11997.00 | 6638082.00 |
| 2058/59 | 2001/02 | 12346.00 | 7518575.00 |
| 2059/60 | 2002/03 | 12643.00 | 8198000.00 |
| 2060/61 | 2003/04 | 15012.00 | 11651204.00 |
| 2061/62 | 2004/05 | 15900.00 | 12606081.00 |
| 2062/63 | 2005/06 | 16000.00 | 13688237.00 |
* Plantation Area covers Private Sector, NTDC and Small
Tea Holder's Area used for tea plantation.
* Tea Production also covers the production quantity from private sector,
NTDC and small holder farmers.
