Based on the proposal of Trade and Exports Promotion Center (TEPC), Ministry of Commerce and Supplies (MoCS) has agreed to extend financial support to the exporters to register their international trademark and establish a strong brand image. [break]
"We have already pushed for the budget, seeking necessary finances to implement it," a senior MoCS official told myrepublica.com.
Going by the plan, the official said the Ministry would provide financial support of Rs 12.5 million for registering the trademark in five major markets, including US, European Union, United Kingdom, Japan and Korea.
While the traders of tea and coffee will have to make contributions from their side as well, National Tea and Coffee Development Board (NTCDB) will coordinate with the stakeholders to develop and define the trademarks and identify ways to promote them in the international markets.
The board has already developed a logo of Nepali Tea. But in the absence of international registration, it has failed to support trade growth. The board is yet to unveil the logo of Nepali Coffee.
Officials said the Ministry took up the fresh step to support the traders as studies conducted by various international agencies, including International Trade Center based in Geneva, have placed tea and coffee high on the list of commodities in which Nepal can rely upon to diversify its trade.
The studies have pinpointed that tea and coffee together make one of the biggest traded items in the global market with strong growth in demand as Nepali tea and coffee are of higher quality.
The quality of Nepali tea and coffee, particularly orthodox tea of Ilam and other hills are at par, if not better, than Darjeeling Tea -- one of the top brands produced on the other side of the border in India, experts have said in the studies.
But because of poor marketing, weak global reach and absence of international brand name and awareness, Nepali traders are not getting even half the price of Darjeeling tea.
If promoted strongly, experts argue that tea and coffee can effectively become one of the largest exports of the country and generate sustainable income. Since a large number of farmers are involved in tea and coffee production, this could create huge income opportunities, thereby, contributing in poverty reduction as well.
"That is why we have laid high importance to these sectors," said the official.
The Ministry has laid high emphasis on promoting these two sectors also because Nepal is witnessing a rapid closure of labor intensive industries like readymade garment and carpet and substantial drop in investment in productive sectors that can create huge job opportunities.
At present, Nepal annually exports 8,600 tons of tea and 88.10 tons of coffee. Some 100,000 farmers are involved in tea and coffee farming.
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