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New facility in Kimtang village of Myagang Rural Municipality aims to modernize production and enhance market access for smallholder farmers

Nuwakot: A new tea processing facility in Kimtang village, Myagang Rural Municipality, has officially started operations, marking a significant milestone in Nepal’s tea industry.

The Mountain Tea Chinese Factory, built under China’s Vibrant Village initiative, is set to drive economic growth and modernize tea production in the district. The initiative, a joint collaboration between the China Foundation for Rural Development (CFRD) and Global Cooperation for Development (GCD), is part of the larger “Tea Value Chain Enhancement Project.”

It aims to improve the livelihoods of more than 300 smallholder farmers in Nuwakot by equipping them with advanced machinery, technical training, and access to both domestic and international markets, reads a press statement.

The new factory is expected to significantly increase Nepal’s tea processing capacity, addressing a critical need in a sector known for its globally recognized organic tea. Many local farmers, however, still rely on outdated farming and processing techniques, limiting both yield and income. With state-of-the-art machinery and training in cultivation and harvesting, the project aims to improve product quality and help farmers meet international standards, project implementing organizations claimed.

A key element of the project is a comprehensive training program for farmers to improve their skills in cultivation, harvesting, and processing. Additionally, the initiative will offer market access for over 600 tea-processing households in Nuwakot and Lalitpur, connecting Nepali producers with local and global markets, ensuring sustained demand and long-term economic benefits for local farmers, stated participants of inauguration event.

“The factory is a very critical infrastructure for processing high-quality tea,” said Kamal Bahadur Tamang, chairperson of Myagang Rural Municipality-4. “It will not only improve tea quality but also strengthen Nepal’s competitiveness in both local and global markets.”

Zou Zhiqiang, director of CFRD Nepal, highlighted the broader economic benefits of the project, noting that the factory is a key step in increasing both the quantity and quality of Nepal’s tea production. “This initiative will pave the way for a more prosperous future for smallholder farmers and their communities,” she said. “By enhancing production, upgrading skills, and expanding market access, we are empowering local farmers to achieve higher incomes and greater prosperity.”

The training program is a central component of the initiative, with Chinese experts leading workshops to enhance farmers’ skills. Dr Bishnu Prasad Bhattarai, former executive director of the National Tea and Coffee Development Board and professor at the Himalayan College of Agricultural Sciences and Technology, emphasized the importance of these skills in opening new market avenues. “This partnership will not only boost production but will also help farmers build vital market connections that will sustain their livelihoods for years to come,” he said.

Chinese technical expert Wang Mingqi expressed hope that the knowledge shared through the project would strengthen Nepal’s tea industry, create new opportunities, and improve farmers’ economic conditions. “This collaboration is about more than just technology transfer, it’s about building lasting relationships that benefit both Nepal and China,” he said.

The Mountain Tea Chinese Factory is poised to address challenges faced by smallholder farmers in Nuwakot and Lalitpur, including low incomes, limited market access, and inefficient farming practices. By improving tea quality and expanding market reach, the project not only supports local farmers but also contributes to Nepal’s broader goals of diversifying agricultural exports and promoting sustainable farming practices.

Key participants at the inauguration included Kamal Bahadur Tamang, chairperson of Myagang Rural Municipality-4, Zou Zhiqiang, director of CFRD Nepal Office, Dr Bishnu Prasad Bhattarai, former executive director of the National Tea and Coffee Development Board, Mukti Marasini, chairperson of GCD, and various local farmers and stakeholders, all united in the goal of advancing Nepal’s tea industry.