History of tea plantation in Nepal - Part 2

During the 1950s, there was a shift in the political scenario of Nepal. A new constitution was written to develop a democratic system. Despite failure in successful democratization, Nepal’s economy at least opened up to the rest of the world. As a result, the stagnant tea industry witnessed an inflow of public and private investment. The first private tea plantation was set up in 1959, in the terai region under the name Bhudhakaran Tea Estate.

In 1996, the Nepal Tea Development Corporation (NTDC) was set up to aid the development of the tea industry. Originally tea leaves produced in Nepal were sold to factories in Darjeeling, as the Darjeeling tea bushes had become old, leading to the deterioration of the processed tea. The Nepalese tea leaves were therefore a valuable input for the factories in and around Darjeeling.

Finally in 1978, the first factory in Nepal was set up in Ilam for the processing of tea leaves and a few years later another factory was set up in Soktim, Jhapa district. From 1978 to the 1990s, various efforts were made by the Nepal Tea Development Corporation with the Overseas Development Administration (ODA), to encourage the participation of small and marginal farmers in the growth and production of tea as a cash crop.

As a result, today the small and marginal famers constitute the majority percentage share in Nepal's tea industry. Slowly, the stagnant tea industry was evolving into a fully commercialized industry, benefitting the country’s economic and socio-economic development. To further aid in the development of its tea industry, in 1982, His Majesty’s Government of Nepal under the reign of the then King of Nepal Birendra Bir Bikram Shah Dev, declared five districts – Jhapa, Ilam, Panchthar, Dhankuta and Terhathum as Tea Zones of Nepal. [Source: Wikipedia]