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Nepal raises coffee purchase prices to ensure growers' profits and vigorously develop the coffee industry

Published: 2026-06-26 Author:

Last Updated: 2026/06/26, Nepal's National Tea and Coffee Development Council (NTCDB) recently announced that the minimum purchase price for fresh coffee fruits and parchment beans will be raised by 5-30 rupees (US $0.0375-US $0.225) per kilogram to help local coffee growers increase their income. After raising the price, grade A coffee

Nepal's National Tea and Coffee Development Council (NTCDB) recently announced that the minimum purchase price for fresh coffee fruits and parchment beans will be raised by 5-30 rupees (US $0.0375-US $0.225) per kilogram to help local coffee growers increase their income.

After raising the price, the purchase price of fresh fruit of Grade A coffee is 100 rupees (US $0.75) per kilogram. According to Nepalese standards, the fresh fruit of Grade A coffee needs to be certified as organic coffee and planted above 800 meters above sea level. The purchase price of fresh fruit of Grade B coffee is 90 rupees / kg, while Grade B does not require organic certification. Nepal's National Tea and Coffee Development Council says the new price will ensure a 20% profit margin for growers.

An inland mountain country of upper South Asia in Nepal south of the Himalayas, bordered by China to the north, and bordered by India on the other three sides. The country's main production is tea, rice, tobacco and so on. The coffee industry is relatively new to Nepal. According to Nepal's National Tea and Coffee Development Council (NTCDB), coffee was not grown commercially until the 1980s and 1990s.

Between 1983 and 1984, the Nepalese Coffee Company (NeCCo) was established, where local farmers could process and dry for export, which also helped to increase production. Then, at the beginning of the 21st century, more and more farmers began to grow coffee, so the Ministry of Agriculture of Nepal launched a coffee development program to provide technical and financial support to local producers.

Kavrepalanchok District in eastern Nepal is the largest coffee producing area in the country, covering an area of 273 hectares and producing more than 32 tons of coffee. The second largest coffee growing area is Gurmi District in western Nepal, covering an area of 231 hectares and producing 27 tons of coffee. And the basic cultivation is Arabica, the common varieties are bourbon, Pacamara, iron pickup and so on. Most farmers use water washing processing methods, however, more manufacturers are experimenting with sun and honey processing technologies. In recent years, anaerobic fermentation has also become popular locally.

According to NTCDB, during the 2021 / 22 harvest season, Nepal produced 354.9 tons of coffee. Production is down from the record of 530 tons in 2018 / 19, but the latest 2022 hits recovered in 23 to 394 tons, an increase of nearly 40 tons over the previous year. And the planting area has also increased by more than 300 hectares over the previous year, reaching 3655 hectares.

Coffee exports reached 77.86 tons, an increase of 11.4 percent over the previous year, with an export value of 130.44 million rupees (US $978300). The Nepalese government is making great efforts to develop the coffee growing industry, and more coffee from Nepal can be seen in the coffee market in the future.

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