EU-backed project launched to improve Nepal’s coffee chain

Despite there being a rise in the value and awareness of Nepali coffee in recent years, there are still many steps that can be taken to improve the entire sector.

Domestic consumption is on the increase, but unfortunately overall production hasn’t risen to match the demand. Something had to give.

Luckily though, news has appeared on our radar that the Nepalese Ministry of Commerce and Supplies (MoCS) has announced the formation of a brand new project that will help all aspects of the coffee industry from farmers through to the exporters.

It will be supported by the European Union to the tune of $6.8m and will run until quarter one 2018.

At the moment, Nepal produces around 360 tonnes of coffee (according to The Himalayan Times), a decrease from the 418 tonnes recorded a few years ago. It is hoped that this invest will be channelled towards schemes that can help the country’s farmers meet demand.

And there is demand. Earlier this year we reported that more and more Nepali coffee is being consumed on the domestic market as consumers become more aware of the products available. But whilst a blossoming sector at home is a good thing, with a limited supply it means less and less is being earmarked for sale on the potentially prosperous foreign markets.

According the Commerce and Supplies Minister Sunil Bahadur Thapa, international demand could top out at 6,000 tonnes – far beyond current capacities and production levels.

Whilst nobody believes that figure can be obtained in the short or medium term, it is hoped that the project, entitled the Trade and Private Sector Development (TPSD) scheme will support the creation and improvement of processing and educational facilities, as well as helping farmers and exporters market their crop.

There’s also talk that the current amount of land used for coffee farmer could be increased from the existing 2,100 hectares.

We shall be doing our best to keep an eye out on developments as and when they happen.