Primarily a tea-growing and drinking nation, coffee production is still relatively new to Nepal. According to the Nepalese government’s National Tea and Coffee Development Board (NTCDB), it was only between the 1980s and 1990s that coffee was grown on a commercial scale in the country.

The NTCDB reports that in the 2021/22 harvest season, Nepal produced 354.9 tonnes of coffee. While this is a decline from the record 530 tonnes produced in 2018/19, production volumes have been increasing in recent years.

The country grows high-quality arabica – and there is clear potential that specialty coffee production could increase, too.

Bhavi Patel is a dairy technologist and food and travel writer, who has been writing extensively about the global coffee industry for some years now.

In this article, she explores the Nepalese coffee sector, the challenges that local farmers face, and whether the country can grow more specialty coffee. 

You may also like our article on micro lots & Monsoon Malabar: India’s future as a coffee origin.

When was coffee introduced to Nepal?

Similar to India and other producing countries, coffee is not native to Nepal. It’s believed that in 1938, nomadic hermit Hira Giri brought coffee seeds from Burma (now known as Myanmar) back to Nepal.

Hira Giri is said to have planted the seeds in Aapchaur – a hill village in the Gulmi District. However, it took another thirty years for coffee production to start increasing in the country when the Nepalese government imported coffee seeds from India in 1968. 

Throughout the following decade, small-scale coffee production spread to other regions of Nepal, including Palpa, Syangja, Kaski, and Baglung.

Commercial coffee production in Nepal

By the mid-1980s, however, farmers started to grow coffee on a commercial scale. Between 1983 and 1984, the Nepal Coffee Company (NeCCo) was established in Manigram in the Rupandehi district. This meant local farmers could collectively process and dry mill their coffees for export, which helped to boost production volumes.

Throughout the 1990s and early 2000s, more and more farmers started to grow coffee. In response, Nepal’s Ministry of Agriculture launched the Coffee Development Programme, which provided technical and financial support to local producers.

Today, the International Coffee Organisation estimates that across 42 districts in the country, there are over 32,500 households involved in coffee production. Moreover, research from Specialty Coffee Nepal, a non-profit organisation which promotes Nepalese specialty coffee culture, says that some 45% of coffee farmers are women. 

The Kavrepalanchok district in eastern Nepal is the largest coffee-producing region in the country – spanning 273ha and producing more than 32 tonnes of coffee. The second-largest coffee-growing district is the Gulmi district in western Nepal, which spans 231ha and produces 27 tonnes of coffee.

Common varieties and processing techniques

Nepal’s climate and landscape make it ideal for growing arabica – mostly because of its high altitudes. In fact, many industry professionals say only arabica grows in Nepal.

Surya Dura is the founder and Managing Director at Lake City Coffee in Pokhara, Nepal.

“About 80% of the coffee produced in Nepal can be categorised as specialty-grade coffee,” he says. “In the 2022/23 harvest season, coffee production is expected to increase to about 400 tonnes.”

The most common varieties found in Nepal are Bourbon, Pacamara, Typica, Caturra, and Catimor – certainly an indication of high-quality coffee.

Most farmers use washed processing methods, however, more producers are experimenting with natural and honey processing techniques. In recent years, anaerobic natural fermentation has started to become more popular, too.

Generally speaking, Nepalese coffee has unique floral and chocolate flavour notes, with some distinct nuttier flavours. The biggest importers of the country’s coffee are Germany, Japan, the US, South Korea, and the Netherlands.

How do people drink coffee in Nepal?

Historically, Nepal is a tea-drinking country. However, coffee consumption has been steadily growing for some years.

“Nepalese baristas working in other countries help to promote homegrown coffee,” says a representative from Specialty Coffee Nepal. “More and more coffee events are also happening in the country, which also helps to bring people from across the value chain together, as well as drawing more attention to Nepalese coffee.”

In line with this, there are more specialty coffee roasters, coffee shops, and education facilities opening in Nepal. A representative from Specialty Coffee Nepal tells me that some of the most notable specialty coffee roasters in the country include Mount Brew Coffee, Nya No Specialty Coffee, Brewshala Coffee, and many more.

Deepak Paudel is a renowned coffee professional in Nepal. He is also the founder of the Pokhara Coffee Roastery.

“Because it is often easier and quicker to learn barista skills than any other profession in the coffee industry, more and more younger people show interest in the position,” he says. “Some of them are also moving to other countries to broaden their skills so they can return to Nepal after a few years and potentially open their own coffee shops.”

Deepak adds that many Nepalese baristas work in Middle Eastern countries or in Australia, where specialty coffee culture is particularly popular.

Popular drinks and brewing methods

As in many other countries, milk-based drinks – such as cappuccinos and lattes – are popular among consumers in Nepal.

However, in recent years, more and more Nepalese coffee shops are using manual pour over brewers. As part of this, we’re seeing more baristas push to get formal training to improve coffee quality, as well as roasters offering classes and educational courses.

Furthermore, coffee consumers in the country are also showing more interest in preparing café-quality drinks at home – with some taking part in coffee workshops. Companies like Brewing House distribute and supply equipment to coffee businesses and consumers alike.

Challenges in the Nepalese coffee sector

Although figures indicate a steady increase in Nepal’s coffee production volumes in the coming years, farmers in the country still face a number of challenges.

As with many other producing countries, Nepalese coffee farmers are dealing with the effects of climate change and a shortage of workers.

Global warming poses several concerning issues for Nepal’s coffee sector. For instance, unpredictable rainfall and frost often damage cherries and blossoms on branches, which can heavily affect quality and yields.

Moreover, the impact of climate change also increases coffee plants’ vulnerabilities to pests and diseases – in particular the white stem borer (Xylotrechus quadripes). 

The Gulmi district underwent a white stem borer epidemic in 2016, which severely affected coffee producers in the region. In some cases, farmers in Nepal have reported up to 60% loss in annual yields because of the insect, which lays its eggs in the branches of coffee plants. Eventually, the plant stops producing cherries and dies.

Even more concerning are the long term effects of climate change on Nepal. Research from Kunming University suggests that Nepal will see a significant shift in its agroclimatic zones over the next few decades. In turn, this could result in up to 72% of the country’s coffee-growing areas becoming unsuitable by 2050.

Labour issues

Many origin countries are currently experiencing labour shortages in their agricultural sectors, including for coffee.

The representative from Specialty Coffee Nepal explains that in Nepal, there are three major reasons for labour issues:

• Low wages
• Lack of formal training and education for farming best practices
• Waning interest in working in agriculture

“Another issue in the Nepalese coffee sector is workers moving to other countries for employment,” Surya says. 

Fluctuations in market prices also lead to further difficulties, which is why some farmers choose to join co-operatives. Co-ops provide a number of benefits to their members, including improving access to several markets, formal training programmes, and farming inputs.

Tulasi Raj Dhital is the founder and chairman at the Central Coffee Co-operative Union Ltd. (CCCU) in Kathmandu, Nepal. 

“The prices that farmers receive for cherry and parchment coffee are fixed by the NTCDB in coordination with other stakeholders, including co-operatives,” he explains. “This means that members know beforehand what they will be paid.

“This helps to ensure co-operative members get a fair price for their coffee,” he adds. “We also help producers understand new farming techniques that help to improve yields and plant health.”

How could the Nepalese coffee sector grow over the next decade?

Ultimately, if coffee production is to become more sustainable in Nepal, farmers need to know how to adapt to the effects of climate change by implementing more climate-smart agricultural practices. Intercropping coffee with other plants, such as bananas, could also be beneficial as they can provide much-needed shade cover.

“If we could plant more coffee using proper farming techniques, as well as planting new varieties, then Nepalese coffee production could grow on a much larger scale in the next decade,” Surya explains. “Improving knowledge, planting a wider range of varieties, and encouraging more young people to take part in coffee production are the three main ways we can grow the country’s specialty coffee sector.

“Specialty coffee production has just started in Nepal, and it’s still yet to gain a big market, but it could happen soon – Nepalese coffee has a lot of potential,” he adds.

The representative from Specialty Coffee Nepal tells me that measures to provide more formal training are already underway.

“Some agricultural institutions in the country have already started including a coffee-focused syllabus as part of their curriculum,” they say. “Farmers need to have proper training, as well as more awareness about planting, harvesting, and processing coffee in the best possible ways.”

Tulasi believes that the country’s government also needs to provide more support to coffee farmers.

“Strengthening and improving logistical and transport facilities would be immensely helpful to coffee farmers,” he tells me.

What about driving consumption?

When it comes to education, Deepak says that it also plays a key role. He explains that he is working hard to attract the attention of the Specialty Coffee Association, which he believes would help baristas and roasters, as well as coffee farmers, to gain better access to different training programmes and events.

In terms of coffee competitions, Deepak believes that Nepal could one day host its own National Barista Championship or AeroPress Championship.

“Nepal already has national champions, but they’re representing other countries,” he tells me. “There are many local coffee competitions taking place, so it shouldn’t be too long before we reach the world stage.”

It’s safe to say that there’s plenty of potential for Nepal to scale its coffee production. And with more people drinking specialty coffee than ever, the future certainly looks promising.

However, at the same time, it’s also clear that for both production and consumption to grow sustainably, Nepal’s coffee sector needs more support – especially when it comes to adapting to climate change.

Enjoyed this? Then read our article on the white stem borer: a threat to the Nepalese coffee industry?

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Most of India’s coffee-growing regions are located in the southern part of the country, with some smaller “non-traditional” areas in the northeast.

In the first week of December 2022, many producers in the south of India had already started harvesting their coffee, with plenty more set to begin in the weeks ahead. However, when Cyclone Mandous hit southern India, it caused a significant amount of damage to some of the country’s largest coffee-growing areas, including Tamil Nadu. 

The storm has resulted in a number of short-term problems for Indian coffee farmers, including damaging ripe cherries. However, more concerningly, the impact of the cyclone raises questions about how India’s coffee sector is able to cope with the medium and long-term effects of climate change.

Bhavi Patel is a dairy technologist and food and travel writer, who has been writing extensively about the global coffee industry for some years now.

In this article, she explores the impact of unpredictable weather on Indian coffee farmers, and how they are recovering following recent storms.  

You may also like our article on how coffee producers can prepare for unexpected weather.

An overview of coffee production in India

According to data from the Coffee Board of India, between 2020 and 2021, over 471,000ha of land was used to grow coffee in the country. India grows both robusta and arabica, with the former accounting for around 70% of the country’s coffee production.

Along the eastern coast and southern peninsula of the country, there are “traditional” and “non-traditional” coffee-growing areas. The three largest coffee-growing regions in the country are Karnataka, Kerala, and Tamil Nadu, which are all located in the south.

Smaller non-traditional growing regions (which have been recently developed for coffee production) are also located in northeast India.

Smallholders account for up to 98% of the country’s coffee farmers. This means these producers own or work on smaller parcels of land – and can sometimes mean they have less access to infrastructure and financial resources, although this isn’t always the case.

The vast majority of Indian coffee is shade grown. This has a number of benefits, including allowing plants to grow in lower temperatures.

Cooler temperatures allow coffee cherries to ripen more slowly, which gives them more time to fully develop their sugars. In turn, this means that Indian coffee is generally fuller-bodied and has more complex flavours.

The impact of recent storms on India’s coffee harvest

Given its geographical location, India is prone to experiencing erratic and extreme weather conditions. Cyclones are among the most prominent.

In simple terms, a cyclone is a large mass of air which rotates around a core of low atmospheric pressure. Generally speaking, they cause intense winds and heavy rainfall, which can have a devastating effect on both urban and rural populations – the latter of which is especially vulnerable to the impact of climate change, as well as where agriculture is also a major source of income for many people.

On 10 December 2022, Cyclone Mandous – the third most intense tropical storm of the 2022 North Indian Ocean Cyclone season – hit north Tamil Nadu. This resulted in heavy rainfall and sustained winds up to 65km and 85km per hour during the rest of the month.

During mid-December 2022, certain areas of India’s southern coffee-growing regions received up to three inches of rainfall in a week, which caused a number of problems for coffee producers.

Insight from local producers

Sundaresh is a producer at Pathinipara Estate, Pampadumpara in the southern state of Kerala.

“We received about 2.5 inches of rainfall in just five days,” he says. “The total number of ‘floaters’ [unripe cherries which rise to the top of floatation tanks] and lighter dried cherries which split open on branches also increased from 7% to 20%, which is a huge loss for us.”

While high levels of rainfall during the flowering and ripening stages are critical to the healthy development of coffee cherries, it can have serious consequences when farmers are harvesting their coffee. It’s especially important for coffee drying, too – warm, dry conditions are best for this, and rainfall can cause difficulties.

Pranoy Thipaiah is the Managing Partner at the Kerehaklu Plantation in Karnataka. He tells me that over the past few years, erratic weather conditions have become more common.

“Cyclones and other extreme weather patterns are happening more regularly, so we need to be proactive in becoming more climate resilient,” he says.

Unexpected weather patterns can also affect the ripening stages in other ways, such as causing both ripe and unripe cherries to fall off plants or split open. 

Pranathi Shetty is a producer at Kolliberri the Coffee Farm in Karnataka. 

“The heavy rains from Cyclone Mandous accelerated the ripening process of many of our plants,” she says. “We had already finished harvesting about 30% of our plants when the cyclone hit, but then suddenly, all of the cherries ripened – even ones which were only semi-ripe a week ago.

“Because of the high humidity and rainfall, some cherries still attached to branches also split open,” she adds. 

What does this mean for coffee farmers?

D.S. Shravan is a partner at Kalledevarapura Coffee and Beanrove Coffee Roasters.

“We started harvesting about a fortnight before Cyclone Mandous hit,” he says. “The varieties which tend to ripen later on, such as Chandragiri, started to ripen much earlier because of the weather conditions.

“Moreover, a lot of cherries were splitting open, and they started to dry on the branches once the sun rose,” he adds.

Nisha Thomas is a producer at Anai Kadu – Pottamkulam C Estate. 

“Shorter flowering and ripening periods means that the cherries will absorb less nutrition,” she says.

Rohan Kuriyan is a producer at Balanoor Plantations. He explains that these issues can have serious consequences for Indian coffee farmers.

“The quantity of high-quality parchment reduces, the volume of cherry increases, and there will be a higher percentage of floaters,” he says. “This is disastrous for us economically, especially as the cost of farming inputs has increased this year, but also because we have already applied all the nutrients to the plants and carried out farming best practices, and now our plants are damaged.”

Navin Rajes is a producer at MSP Coffee in Yercaud, Tamil Nadu.

“We lost about 20% of our crop because of fallen cherries,” he says. “Picking fallen cherries increases labour costs by about five times, but not all of them can be processed.”

Ultimately, to avoid mould growth and attracting pests, farmers need to collect fallen cherries as soon as possible, which means they may need to invest more money to hire pickers. Moreover, pickers in India usually receive payment per kilogram of cherry. So, when cherries swell, they become heavier, which can mean that producers end up paying more money for lower yields.

Support for local producers

It’s clear that erratic and extreme weather conditions are causing a number of issues for some of India’s coffee farmers. Moreover, because of wet and humid conditions, it could lead to more challenges in the future.

To combat these issues, Indian coffee producers have taken a number of actions, including:

• Using large industrial fans to keep coffee cherries dry.
• Covering their harvested cherry and coffee plants to protect them from heavy rainfall.
• Hiring more labourers, so that farm workers can more regularly rake and spread out coffee, thereby helping it dry more quickly.

However, because most Indian coffee is shade grown, tree canopies help to provide natural protection from heavy rainfall and winds, as well as minimising soil erosion.

Navin, meanwhile, believes that improving the climate resilience of India’s coffee sector is essential to secure its future.

“We need to be able to adapt better to changing weather patterns,” he says. “This means reworking our regular farming practices, which can be a long and tedious process, but it’s the only way forward for farmers in our area.

“Investing in infrastructure more will serve to protect the harvested cherries, as well standardising post-harvest processing,” he adds.

Understanding the impact of climate change

According to the United Nations’ latest Intergovernmental Panel on Climate Change report, India is one of the most climate-vulnerable countries in the world. Estimates suggest that its exposure to more extreme weather has led to a 16% loss in GDP over the past two decades – and its agricultural sector is by far the most vulnerable to this.

“We need to focus on building better infrastructure to safeguard our coffee,” D.S. Shravan says. “We can’t undo the damage caused by climate change, but we can work towards being better prepared – it’s the only way forward.”

As part of this, one of the solutions could be developing and disseminating more climate-resilient varieties in the Indian coffee sector. Organisations such as World Coffee Research have recently launched new projects to provide more support on these efforts, but it’s clear that more work needs to be done.

“These varieties could help to improve yields in India as we cope with the effects of climate change,” Pranathi says.

The growing impact of climate change means that weather conditions in India – and other coffee-producing countries – will continue to become more erratic and extreme.

“Weather conditions like this are becoming a regular occurrence in many parts of the world,” Rohan says. “The monsoon seasons are getting longer, and unpredictable rainfall is becoming more common every year during harvests. 

“Research and collaboration is critical to the survival of the Indian coffee sector,” he concludes.

Enjoyed this? Then read our article on why frost in Brazil in 2021 caused global coffee prices to rise.

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