Nepal is a suitable country for coffee production. However, even today, domestic production cannot meet market demand. A large portion of coffee has to be imported from the Indian market. To discuss the current situation of coffee production in Nepal and the upcoming election of FNCCI—the largest private-sector organization—we spoke with Omanath Adhikari, President of the Coffee Entrepreneurs Association.
Below is the edited excerpt of the conversation conducted by Sargam Tamang for KTM Voice:

What is the current status of coffee production in Nepal?

Nepal has good potential for coffee production. Compared to the past, production has been gradually increasing. Previously, around 400 tons of coffee was produced. Now, there is a possibility of producing nearly 500 tons. This year, coffee production has increased slightly.

How can coffee production be increased? What needs to be done to grow better coffee?

Coffee farming requires everything from planting saplings to irrigation. Coffee plants cannot withstand direct sunlight; they need shade. Along with shade, irrigation is needed during winter. After harvesting, pruning, proper fertilization, disease prevention, and timely use of pesticides to control pests are essential.
Such proper crop management has supported the growth of coffee farming. If we focus on these aspects, production can be increased.

What is the current situation of coffee marketing in Nepal? What challenges do you face in marketing?

There is good potential for coffee in Nepal, and the marketing system is also reasonable. However, Indian coffee is entering Nepal in large quantities. Because imported coffee dominates the market, Nepali-grown coffee has not been able to perform well.

This is our major challenge. Although the habit of drinking coffee among Nepalis has increased, it is still not sufficient. People drink coffee, but they do not know where it comes from. Sometimes, even the palate cannot distinguish it.

If sellers honestly disclose where the coffee is from, there would be no problem. Consumers should also ask whether the coffee is Nepali or not. Our main challenge right now is imported coffee.

Statistics show that Nepal imports ten times more coffee than it exports. Even with good production, why can’t we export enough and why are we forced to import?

Coffee production in Nepal is very low. When production is low, export naturally becomes low. The number of consumers has increased—more coffee lovers and more cafés. There are more than 15,000 cafés operating in Nepal. When the number of consumers increases, demand automatically rises.

To meet this demand, coffee must be imported. Whatever is produced domestically is consumed internally. About 100 tons is exported, and the remaining is consumed in the local market. Internal demand has risen so much that we are now forced to import.

What role has the association played to increase coffee production?

To increase production, we form producer groups and identify potential coffee-growing areas at the ward level of municipalities and rural municipalities.

We write to local governments requesting them to allocate budget and encourage sapling plantation in suitable areas. We have discussed coffee development with the federal government as well. We have provided suggestions to the Finance Minister and strongly raised the subject during budget discussions.

How satisfied are farmers with coffee farming?

Those who plant only a hundred or two hundred saplings on two ropani of land cannot sustain their livelihood from coffee. Small-scale farmers are not satisfied. Those who cultivate coffee on a commercial scale and in larger quantities, however, are satisfied.

Have you been able to supply Nepali-grown coffee to the Nepali market?

We have not been able to supply enough Nepali-grown coffee to the domestic market. Out of 400 tons produced, 100 tons are exported, and around 300 tons are consumed domestically. Meanwhile, approximately 1,600–1,700 tons of coffee imported from abroad is consumed in Nepal.

Therefore, current market demand is around 2,100 tons, whereas our production is only 400 tons. Nepal has tremendous potential; coffee can be grown on up to 1.2 million hectares. If we increase production, we can meet domestic demand and still have enough for export. But the government has not provided adequate support. With proper assistance, coffee has tremendous prospects.

There is no major market problem for Nepali coffee. There is strong demand internationally, but we have not been able to supply. If we focus on coffee production for the next ten years, it could be very promising.

Changing the topic slightly—you are also a commodity member of FNCCI. Has the election atmosphere begun?

As far as I know, nothing has started yet. I personally am not very involved in election matters. If we talk about FNCCI, the organization should not only discuss other business sectors—it must strongly raise agricultural issues as well, especially coffee, which has great potential. FNCCI should take initiative in this.

Whom will you support in the FNCCI elections?

Candidacies are not yet finalized. No panel has been formed. Therefore, it is too early to say whom I will support.

What kind of leader should head FNCCI?

The next leader should be someone who can take everyone along. They should not only focus on their own business agenda but represent all sectors. In short, someone with a broad mindset who can respect everyone should lead FNCCI.