National Tea and Coffee Development Board (NTCD) raises coffee price

National Tea and Coffee Development Board (NTCD) -- a promotional body for tea and coffee -- has raised price of Nepali organic coffee in domestic market effective from Tuesday.

A meeting of the price fixation committee held Tuesday decided to increase the selling price of fresh cherry and coffee parchment for domestic buyers “We increased minimum support prices so as to encourage farmers to boost coffee production,” said Binay Mishra, executive director of NTCD, told the press on Tuesday.

According to Mishra, prices of fresh cherry and coffee parchment have been set at Rs 30 and Rs 150 per kg, up from Rs 27 and Rs 142 per kg respectively. However, export prices are fixed by exporters themselves as per the negotiation with overseas importers.

Producers are upbeat about the prospect of exports of Nepali coffee in the coming days with the registration of trademark of Nepal organic coffee at the Department of Industry (DoI) Monday.

“We are hopeful that the market for Nepali organic coffee in international market would be expanded with the registration of trademark,” said Shyam Bhandari, president of Nepal Federation of Coffee Producers.

NTCD is formally unveiling the new trademark at a program to be organized to mark National Coffee Day Wednesday.

Mishra also said NTCD would initiate the process of registering the trademark in major coffee importing countries for the promotion of Nepali organic coffee.

Nepali farmers are producing Arabica varieties of coffee that can only be produced in hilly districts. Over 25,000 farmers are involved in coffee farming in a total of 1,630 hectares of land in around 40 districts across the country. However, commercial farming is done only in about one and half a dozen districts, including Lalitpur, Gulmi, Syangja, Palpa, Kaski, Kavre, Sindhupalchowk and Arghakhanchi.

“We have formulated Three-Year Strategic Plan to promote production and exports by enhancing quality and productivity of Nepali coffee with the involvement of greater number of farmers and using modern technology,” said Mishra.

Export of green bean, which is obtained after processing coffee parchment, touched 120 tons in fiscal year 2009/10, up from 112 tons recorded a year earlier. Production of green bean increased to 343 tons during 2009/10, up from 267 tons recorded during the previous year.

Nepal imported coffee worth Rs 59.54 million in 2009/10, down from Rs 84.4 million recorded a year earlier, thanks to rise in domestic production.


Districts in western development region contribute over 60 percent of the total coffee produced across the country:

Syangja is the largest producer in the country  with 29 tons of production last year

Districts in western development region contribute over 60 percent of the total coffee produced across the country, thanks to rapid expansion of coffee farming in the region over the last few years.

More farmers are switching to coffee farming due to growing demands and subsequent rise in prices. The region has developed into a center for organic coffee production in recent years.

According to regional office of National Tea and Coffee Development Board in Pokhara, coffee farming has now spread to 11 districts in the region. Arabica variety of organic coffee produced in the region is exported to different overseas markets like Japan, USA, South Korea and the United Arab Emirates.

“Districts in western development region contributes over 60 percent of total coffee produced across the country,” said Raghupati Chaudhari, chief of the regional office.

Though Robusta and Arabica varieties of coffee are produced across the world, Nepali farmers cultivate only Arabica variety of coffee. Coffee farming has been recorded in around 1,056 hectares of land in the region. A total of 14,107 farmers are producing about 140 tons of coffee annually, Chaudhari added.

He further added that Syangja, Palpa, Gulmi and Kaski are the key districts in the region for coffee farming. “Syangja is the largest producer in the region with 29 tons of production last year,” Chaudhari said, adding, coffee production in Palpa, Gulmi and Kaski was recorded at 27 tons, 22 tons and 21 tons respectively.

Lalitpur, Kavre, Sindhupalchowk and Arghakhanchi are the leading districts in the country terms of coffee farming. Similarly, Baglung, Parvat, Dhading, Gorkha, Lamjung, Rasuwa, Nuwakot, Okhaldhunga, Ramechhap, Khotang, Makawanpur and Ilam are the emerging coffee producing districts, according to the board.

“Higher rate of return as compared to other crops and lucrative markets in overseas countries are the major factors that have attracted farmers to coffee farming,” Chaudhari said. He, however, added that total production is far lower than the demand for Nepali organic coffee from overseas markets.