1 AIT Asian Institute of Technology

A case study of the Nepali tea industry : opportunities, risks and challenges

AuthorPokharel, Sweta
Call NumberAIT RSPR no.SM-07-91
Subject(s)Tea trade--Nepal

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration in International Business
PublisherAsian Institute of Technology
Series Statement
AbstractAlthough tea has been an important product in Nepal for 144 years, almost as long as tea from the Darjeeling hills of India, yet Nepalese tea has not been able to contribute its maximum to the country's GDP. The Nepalese Tea industry is continuously struggling to make a positive mark in the international market. With a steady increase in demand every year, tea promises to be a rewarding cash crop in providing the Nepalese farmers with better yield and income. Since the hilly terrain as well as climate is very conducive to producing premium quality tea, boosting the tea industry presents an attractive possible solution. Despite being a small country with relatively weak infrastructure and lack of funds, Nepali tea industry's does seem like a very promising industry. Hence, with a significant increase in tea production along with the quality it possesses, Nepal should be able to contribute a significant amount to the world tea production in the near future. Combining best practice in the business realm with best practice from the development sector will be a key factor in helping Nepalese tea sector lead in poverty alleviation. But if it is left alone to struggle with just market forces prevailing, the Nepalese tea sector will have difficulty competing internationally. Similar to many other LDCs, Nepal is also losing out in many areas of gaining productive capacities; like infrastructure, institutional weaknesses, and demand and supply constraints. These hindrances have definitely minimized the highs Nepali tea industry could have achieved. With better policy introduced by the government together with the support and efforts from other agencies, superior results can be obtained. More emphasis on research and development and better technology for production is also needed to fully exploit the potential of this industry. Most importantly, appropriate marketing strategies to suit the domestic and international market need to be adapted to establish itself in this competitive market
Year2007
Corresponding Series Added Entry
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C. S.
Examination Committee(s)Sununta Siengthai;Dimmitt, Nicholas J.
Scholarship Donor(s)Asian Institute of Technology Fellowship
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007


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