Sector 06 — Agriculture and Tea

55% global.
The premium origin.

Nepal is the world’s largest producer of large cardamom — 55% of global production. Cardamom exports reached a record Rs 10.70 billion in the first nine months of FY2025/26, up 71% year-on-year by value. Orthodox tea from Ilam and Jhapa, anchored on a 162-year heritage from the 1863 Ilam Tea Estate, exports to 20+ countries under the “Nepal Tea — Quality from the Himalayas” geographical trademark. The agriculture sector is not Nepal’s growth engine. It is Nepal’s structural sector, and its premium niche export tier is the commercial story.

25.16%

Agriculture share of GDP
National Statistics Office

~60%

Labour force in agriculture
Ministry of Agriculture & Livestock Development

100%

Foreign ownership permitted — FITTA 2025 ordinance
Government of Nepal, January 2025

Rs 10.70B

Large cardamom exports 9-month FY25/26 — record, +71% YoY value
Department of Customs, mid-July 2025 to mid-April 2026
Nepal’s Agriculture and Tea Sector

Beyond the structural sector.
The premium origin.

Agriculture remains the largest single sector in Nepal’s GDP composition at 25.16% and employs approximately 60% of the labour force. The sector’s commercial significance has shifted from subsistence production toward two distinct premium-origin export anchors: large cardamom from the Eastern Hills and orthodox tea from Ilam and Jhapa. Nepal is the world’s largest producer of large cardamom, accounting for 55% of global production, followed by India and Bhutan. The FITTA 2025 ordinance placed agro-processing on the list of sectors open to 100% foreign ownership, removing the joint-venture-with-local-partner requirement that historically slowed strategic acquisition activity.

Cardamom exports reached a record Rs 10.70 billion in the first nine months of FY2025/26, up 71% year-on-year by value (Department of Customs). The price strength reflects tight prior-year stocks, a 20% production increase from the four-year sapling maturation cycle, and constrained Indian supply. Nepal’s tea sector traces commercial history to the Ilam Tea Estate founded in 1863 — 162 years of orthodox tea production from the Eastern Hills. Nepali orthodox tea exports to 20+ countries under the “Nepal Tea — Quality from the Himalayas” geographical trademark, distinguishing the origin from competitor regions.

Commercial Observation

Nepal’s agriculture economy is not competing on volume rice-wheat-pulse production. It is competing on Himalayan-origin specialty: large cardamom at 55% global production share, orthodox tea from a 162-year heritage, single-origin coffee, mountain botanicals, and medicinal herbs. The addressable market is the global premium tier of specialty retail and direct-to-consumer brands willing to pay premium prices for origin-certified Himalayan provenance — and Nepal.com is the platform that translates this thesis into the operational language of specialty FMCG, cooperative-tier value-chain capital, and direct-to-international-market export operators.

Large cardamom is cultivated predominantly in four Eastern Hills districts which together account for more than 80% of national production. Approximately 60,000 farming families depend on cardamom cultivation across roughly 18,000 hectares. The post-harvest drying method that produces Nepali cardamom’s distinctive smoky flavour profile is the differentiating value-add against Indian and Bhutanese competition. The Federation of Large Cardamom Entrepreneurs of Nepal is the industry body representing producers, processors, and exporters across the eastern hills value chain. Tea, like cardamom, is regulated by the National Tea and Coffee Development Board.

The institutional capital architecture is multilateral. The Asian Development Bank’s agriculture portfolio, the International Labour Organization’s responsible business conduct programme, the FAO Nepal country programme, and the World Bank’s rural-development portfolio provide the concessional capital and technical assistance underpinning the smallholder-tier infrastructure. Nepal’s tea cultivation spans approximately 20,000 hectares against a meaningfully larger area technically suitable for orthodox tea production — indicating substantial expansion headroom under a credible commercial framework. The Nepal Trade Integration Strategy designates cardamom and tea as priority export categories.

Urgency Anchor

Three institutional catalysts converge: the FITTA 2025 ordinance permitting 100% foreign ownership of agro-processing with automatic-route approvals up to NPR 500 million; the FY2025/26 cardamom record (Rs 10.70 billion in nine-month exports) establishing Nepali large cardamom as a credible global premium category with quantified pricing power; and the Himalayan-origin specialty thesis positioning Nepal’s premium-niche agriculture against the global specialty FMCG market. Capital deployed before Nepal’s 24 November 2026 LDC graduation captures the pre-graduation cost basis on land, labour, and processing infrastructure.

Sector Key Figures

Agriculture GDP share

25.16%

Labour force

~60%

Cardamom global production rank

#1 (55%)

Cardamom exports 9m FY25/26

Rs 10.70B

Cardamom YoY value

+71%

Foreign ownership (FITTA)

100%

Business Analysis

Available to qualified partners

LDC Graduation
24 Nov 2026

The pre-graduation cost-basis window for capital deployment in land, labour, and agro-processing infrastructure closes at graduation. FITTA 2025 permits 100% foreign ownership in the sector.

Nepal.com Partnership
Building for Nepal’s premium agriculture story?

Sector Intelligence Briefings available to qualified partners.

error: Content is protected !!