Glimpses of the Workshop

FOREWORD
Today commercialization of agriculture is an inevitable reality throughout the
whole world. There are a number of factors affecting the commercialization process
in agriculture. Some of them could be named as rapid growth of economies in the
developing and developed countries, introducing of new technologies, market
expansion, market liberalization, urbanization, rapid increase of demand for food,
decreasing of farming population, liberalized and open economic policies, bilateral
and multilateral economic agreements and government agricultural policies.
Commercialization in agriculture is not a new phenomenon and it is not a surprise
to the Nepalese farming community. It has been one of the main components of
agricultural development of Nepal since Agricultural Perspective Plan (1994/952014/15). One of the prioritized outputs of APP is to promote high value crops. For
this it has prioritized different crops for different ecological zones of the country:
Terai, mid-hill and high-hills. Though APP has not focused coffee as one the high
value crops, the subsequent agricultural policies and strategies have paved the
way for the promotion of coffee as high value and exportable commodity.
As Nepal is a mountainous country, coffee is the best suitable crop for mid-hills
which has multiple advantages: can be grown in the steep hill without much care
and has high premium price in niche markets. The ecological settings in the hills
provide Nepalese coffee a unique opportunity to enter international specialty
markets. It is grown in small family farms under shade with little or no external
inputs used.
Though small in amount, the coffee could be an important occupation in the rural
economics of Nepal with massive participation of marginalized, poor and downtrodden class of the rural communities in its farming. Additionally, it could be an
important means for earning foreign currency and in maintaining a balance in the
ecosystem.
Though the coffee industry has been growing fast, there are several problems. The
main problem is market. Because of limited quantity, Nepalese coffee has not been
able to influence in international market despite being unique in nature. Coffee
being relatively a new crop for Nepal, there has been limited research or study on
this crop. Resources are also lacking for certification of coffee as an organic product.
Similar is the problem in quality, processing and handling.
The workshop was organized to develop an understanding among public sector,
non-governmental organization, private sector and donors regarding coffee subsector, analyze opportunities and constraints and develop common understanding
for the development and promotion of Nepali coffee.
I would like to thank representatives from the World Bank, Coffee and Tea
Development Section of DOA, Trade Promotion Center, Agro Enterprise Center,
National Tea and Coffee Development Board, Nepal Coffee Producers Association,
District Coffee Producers Association, Coffee Promotion Program of Helvetas Nepal
and professionals and practitioners dedicated to coffee sub-sector development
for making the workshop a success.

Yogendra Kumar Karki

Project Director
Project for Agriculture Commercialization and Trade (PACT)
Maharajgunj, Kathmandu, Nepal
i

Table of Contents
FOREWORD i
ABBREVIATIONS AND ACRONYMS

iv

1.

BACKGROUND

2.

REVIEW OF THE COFFEE SUB-SECTOR

IN NEPAL

3.

WORKSHOP PAPERS

17

3.1

Importance of Coffee Sub-Sector Analysis

17

3.2 Present state of coffee production in

Nepal: Opportunities and Challenges

21

3.3 g]kfnL skmL] lgof{tsf ;+efjgf tyf r'gf}tL

26

3.4 Comments on Export Potentials and

Constraints of Nepalese Coffee

27

3.5

28

skmL If]qdf ;+nUg ;/f]sf/jfnfx? / o;sf] Joj;flos pTkfbgdf ltgsf] e"ldsf

3.6 Coffee Research and Development in Nepal

31

3.7 Comment on Coffee Research and Development in Nepal

36

3.8 Activities and achievements of COPP and

its present activities in support of the
commercialization of coffee sub-sector

38

4.

MAJOR ISSUES AND QUERIES RAISED DURING FLOOR DISCUSSION

42

5.

ANNEXES

Annex 1: Schedule of Coffee Sub-Sector Workshop

44

Annex 2: List of Participants

45

Annex 3: Presentation Materials

47

iii

ABBREVIATIONS AND ACRONYMS

iv

ADB

Asian Development Bank

AEC

Agro Enterprise Center

CoPP

Coffee Promotion Program

CTDS

Coffee and Tea Development Section

DADO

District Agriculture Development Office

DCPA

District Coffee Producers Association

DFTQC

Department of Food Technology and Quality Control

DoA

Department of Agriculture

FNCCI

Federation of Nepal Chamber of Commerce and Industry

FY

Fiscal Year

GAP

Good Agriculture Practices

GMP

Good Manufacturing Practices

GON

Government of Nepal

ha

Hectare

HCPCL

Highland Coffee Promotion Company Limited

ICO

International Coffee Organization

IFOAM

International Federation for Organic Agriculture Movement

kg

Kilogram

MoAD

Ministry of Agriculture Development

mt

Metric ton

NARC

Nepal Agriculture Research Council

NCPA

Nepal Coffee Producers Association

NOCP

Nepal Organic Coffee Products

NTCDB

National Tea & Coffee Development Board

PACT

Project for Agriculture Commercialization and Trade

Rs

(Nepli) Rupees

ToR

Terms of References

VDC

Village Development Committee

WB

World Bank

1. BACKGROUND
1.1 The Workshop
This report provides a short summary of the recent coffee sub-sector workshop
organized by the Project for Agriculture Commercialization and Trade (PACT) on 11
April 2011. The workshop was held in Gangjong Hotel, Kathmandu and attended
by all key representative stakeholders involved in production, processing and
marketing from the public (government), non-government and private sector.
Participants from the Ministry of Agriculture Development, Department of
Agriculture, Tea and Coffee Section, National Tea and Coffee Development Board,
National and District Coffee Producers Association, Trade Promotion Centre, Agro
Enterprise Centre (AEC) of the Federation of Nepalese Chambers of Commerce
and Industries, and PACT attended the workshop. This report was designed
primarily to identify potentialities and constraints towards the improvement of the
competitiveness of small coffee farmers and formulate value chain development
plan for commercialization of the coffee.
This report has been prepared for circulation to the participants but is also intended
to serve as a resource for those interested in the workshop content and agencies
involved in the production, processing and marketing of coffee in Nepal.

1.2 Project for Agriculture

Commercialization and Trade
The Project for Agriculture Commercialization and Trade (PACT) is a six-year project,
of the Ministry of Agriculture Development, Government of Nepal (GoN) and is
supported by the World Bank (WB). The grant agreement was signed between
GoN and WB on 21 August 2009 and it became effective on 13 November 2009.
The project is being implemented in 25 districts located in Central, Western, Midwestern and Far-western development regions of Nepal representing Mid-hills and
Terai regions. The project districts are:

The Project District

Region

Central

Western

Mid-western

Far-western

Mid-hills

Kavre Palanchok, Kathmandu,

Lalitpur, Dhading,

Tanahu, Lamjung,

Surkhet

Terai

Chitwan, Bara, Parsa, Rautahat,

Sarlahi, Mahottari, Dhanusha

Kaski, Syangja, Palpa, Nawalparasi,

Rupendehi,
Kapilvastu

Dang, Banke,
Bardiya

Kailali, Kanchanpur

The overall objective of the project is to improve the competitiveness of smallholder

farmers and the agribusiness sector in selected commodity value chains. It intends
to achieve above objectives by:
(i) helping farmer groups and cooperatives engage in profitable marketoriented production and improved access to markets through the provision
of technology and information services and critical public infrastructure and
linkages to agribusiness;
(ii) creating and strengthening industry-wide partnerships along the value
chain, thus forging linkages between producers, traders, processors, and
other stakeholders and,

(iii) reducing existing obstacles to agriculture

and food trade thereby increasing the ability
of farmers and agribusiness to respond to
Sanitary and Phyto-sanitary (SPS) measures
and food-quality standards to meet domestic
and international market requirements.

The project has three components:

Component 1: Agriculture and Rural
Business Development. The objective of this

component is to enable farmers to engage in

profitable market-oriented production and to
promote partnerships and market linkages with
other value chain participants and agribusinesses.
The component helps agro-enterprises, commodity
associations, cooperatives, registered farmer groups/
organizations and technology and service providers
to actively engage in the development of commodity
value chains by partially financing demand-driven
investment proposals through competitive matching
grants

Component 2: Support for Sanitary and

Phyto-sanitary (SPS) Facilities and Food
Quality Management. The objective of this

component is to strengthen the efficiency and

effectiveness of SPS in order to reduce existing
obstacles to agricultural and food trade. It also
aims to support the private sectors efforts to gain
market advantage through improved food quality
management. It provides critical backing to the value
chain investments being supported by Component 1
and other related projects by Development Partners.
This component is implemented through three line
departments of the MOAC namely, Department
of Food Technology and Quality Control (DFTQC),
Department of Livestock Services (DLS), and
Department of Agriculture (DOA) and the private
sector.

Component 3: Project Management and

Monitoring and Evaluation. The objective of
this component is to support a Project Management
Team (PMT). Activities carried out for overall project
management, monitoring and evaluation and
reporting are financed under this component.

1.3 Importance of Coffee in Nepal

A large part of land located in the mid hills of Nepal
with an altitude of between 800-1600 meter above
sea level, is suitable for coffee cultivation. Available
information suggests that coffee cultivation is much
more remunerative than the traditional crops being
cultivated in the rainfed upland of mid-hill. Coffee

cultivation provides 4.33 times higher net return

than maize, 3.30 times higher net return than millet
and 1.87 times higher net return than maize and
millet combined, per unit land. Those figures would
be much higher if coffee is intercropped with ginger
and with banana as double purpose tree: fruits
and shade. Internal rate of return of coffee orchard
are estimated at 19 percent, 26.9 percent and 32.5
percent for coffee alone, coffee with ginger and
coffee with banana, respectively assuming a 30
years average life of orchard. Another advantage of
coffee farming is employment generation. Coffee
cherry picking coincides with a season when there is
minimal demand of labor for other crops, providing
additional job not only to the concerned farmers but
also to marginal farmers and land less laborers.
The PACT has included coffee as its one of the
thematic area starting from the first tranche of
competitive grant. Among the 48 sub-projects
receiving competitive grant under the first tranche,
five (more than 10%) were for the promotion of
coffee at different levels.

1.4 Objectives of the Workshop

The main objective of the workshop was to develop
an understanding among the different stakeholders
including
public
sector,
non-governmental
organization, private sector and donors working
in coffee sub-sector; analyze opportunities and
constraints for the development; and promotion of
Nepali coffee. Specific objectives were:
^^ to provide opportunities and platform for
improving value chain linkages among coffee
producers, processors, traders and other
stakeholders;
^^ to analyze the potentials, constraints and
possible strategies for the sub-sector
development;
^^ to explore opportunities for the improvement
of the competitiveness of small coffee
farmers; and
^^ to explore how the PACT can help the coffee
stakeholders involved in different stages of
development/promotion of Nepali coffee.

1.5 Workshop Participants

Mr. Nathu Prasad Chaudhary, Secretary, Ministry of
Agriculture Development chaired the entire workshop.
In the beginning of the workshop, project director,
PACT explained the project itself, objectives of the
workshop and expected outputs. A total of six papers

were presented in the workshop covering Research and

Development, policy issues, stakeholders, production to
marketing and export of coffee. Brief presentation was
also made by District Coffee Producers Associations and
PACTs competitive grant recipients.
Representatives from different ministry, departments,
programs of the government of Nepal, National
Tea and Coffee Development Board, Tea and Coffee
Development Section, Trade and Export Promotion
Center, Agro Enterprise Center, Coffee promotion
Program of Helvetas Nepal, Nepal Coffee Producers
Association, District Coffee Producers Associations,
and Private companies participated in the workshop.

1.6 Organization of the proceedings

Brief introduction of the Project for Agriculture
Commercialization and Trade, its objectives, scope,
coverage; and objective of the workshop are given in
Chapter 1. A review of the Nepalese coffee sub-sector is
in Chapter 2 and the workshop papers are compiled in
Chapter 3. The papers are included either in English or
Nepali, as received from the authors. The PACT requested
commentators to provide comments on each of the
papers in writing. Received comments are placed after
the main paper. Major points raised by the participants
including suggestions from the chairperson of the
workshop are compiled in Chapter 4. Finally, Workshop
schedule, participants and presentation materials used
by the authors are placed in Annexes.

2. REVIEW OF THE COFFEE SUB-SECTOR

IN NEPAL
Kamal R. Paudyal 1

2.1 Background
Coffee is an important high value commodity and a popular beverage. Over 2.25
billion cups of coffee are consumed in the world every day. One of the good things
about coffee is that over 90% of its production takes place in the developing
countries, while consumption takes place mainly in the developed/industrialized
countries. Worldwide, 25 million small producers rely on coffee for a living. In Brazil
alone, where almost a third of the world's coffee is produced, over 5 million people
are employed in the cultivation and harvesting of over 3 billion coffee plants.
In Nepal there are about 28 thousand farmers growing coffee in 40 mid-hill districts.
However, organized coffee farming under Nepal Coffee Producers Association
(NCPA) is reported in 14 districts only. Its cultivation is more labor-intensive
than most of the alternative crops grown on same land: providing additional
employment opportunities to rural populace.
More than 150 million Americans (18 and older) drink coffee on a daily basis,
with 65 percent of them consuming their hot beverage in the morning. Average
coffee consumption is more than 100 liters per capita in US. Though coffee is not
traditional drink of average Nepalese, it is becoming popular drink in Nepal in
recent past. According to a survey (COPP 2010) consumption of coffee increased
from 156 mt in 2006 to 384 mt in 2010: around 146 percent increase in three year.
This quantity converted to drink represents only about three cups of coffee per
capita in 2009.

2.2 History
The botanical evidence indicates that the history of the coffee bean began on the
plateaus of central Ethiopia from where it was taken to Yemen and cultivated since
the 6th century. Gradually coffee cultivation wandered east and west, eventually
forming a belt roughly bounded by the tropics of Cancer and Capricorn. Growing
regions typically offer moderate sunshine and rain, steady temperatures around
20oC and rich, porous soil (http://www.coffeeresearch.org/coffee/history.htm).
Consumption of coffee also started in Arabian Peninsula, where it was commercially
roasted, boiled and prepared Gahwa meaning beverage made from plant from
eleventh century. A history of coffee origin, including the legend of Kaldi the
Shepherd, and other activities are listed in Annex II.1.
In Nepal, coffee plantation is relatively new practice. Initially coffee was promoted
by some projects and I/NGOs as a soil management for control of soil erosion and
other environmental protection practices. This practice led the farmers regard
coffee as an easy to grow, and less demanding crop cultivated on marginal upland
conditions. After understanding its real importance farmers realized that it needs
better management to maintain the quality of the coffee produced.
According to available sources, a hermit, Mr Hira Giri, had brought some seeds of
coffee from Sindu Province of Myanmar (earlier called Burma) and had planted in
Aapchour of Gulmi District for the first time in Nepal in the year 1938

Dr. Kamal Raj Paudyal is Value Chain Development Specialist in Project for Agriculture Commercialization and Trade, Kathmandu.
paudyalkr@pact.gov.np

AD (1995BS). Since then it spread from one farmer

to another as a curiosity plant for three decades
without external intervention. The first intervention
from public sector was recorded when Agriculture
Development Bank imported coffee seeds and
distributed to interested farmers for growing as cash
crop. First commercial nursery was established by
an innovative farmer in Aanpchaur village of Gulmi
district in 1981. Similarly, distribution of coffee
plants at subsidized prices was first initiated by Tinau
Watershed Project in 1982.
Initially, coffee seeds were roasted and grinded
at household level using traditional technology.
Processing of coffee at larger scale started with
establishment of coffee mill at Manigram village of
Rupandehi district in 1983.
The government established Tea and Coffee
Development Section under Fruit Development
Directorate of the Department of Agriculture in
1993 to coordinate the coffee development in the
country. National Tea and Coffee Development
Board was also established under the National Tea
and Coffee Development Board Act (1993). In 1994,
export of Nepali coffee was recorded first time with
dry processed green beans to Japan. Brief historical
events of coffee sub-sector in Nepal are listed in
Annex II.2.

Figure 1: Nepal Coffee Logo

certification guidelines. The National Tea and Coffee

Development Board (NTCDB) and NCPA have guided
the farmers not to grow coffee at less than 800 meter
altitude. Many of the coffee growing areas also get
cool wind from Himalayas that help produce superior
quality. As a genuine process of promoting Nepalese
coffee the Government of Nepal (GoN) has approved
Nepali Coffee Logo (Figure 1) and awarded to three
traders that meet the set standards. However, serious
concerns have been raised by the people involved in
coffee business regarding the enforcement of the
implementation guidelines until proper monitoring
mechanism is put in place.

2.4 Advantages of Coffee in

Nepalese Agriculture
Coffee has been predominantly planted in upland
area as an additional /extra crop without disturbing
the existing cropping system and on steep hillsides
where other crops do not perform well. In such
cases, next best alternative use of the land is forage
production or grazing. In the recent past, farmers
have also started growing coffee in Bari (rainfed
upland) where maize could be grown in rainy season.
This means maize alone or maize followed by millet/
wheat are the next best alternative crop of coffee.
Comparative advantages of coffee cultivation vis-avis competing crops are discussed in the following
paragraphs.

2.4.1 Land Productivity

Coffee plants start bearing fruit from the fourth year
of plantation and provide full scale production from
its 7th to 30th year. A sample survey conducted in
Sindhupalchok district in 2009 reported that average
annual cost of coffee cultivation was Rs 43,833 per
ha and gross return was 78,023 per ha meaning a net
return of Rs 34,190 per ha per annum2 (COPP 2009).

2.3 Specialty of Nepali coffee

Nepalese coffee cultivation practice is environmental
friendly and free of harmful pesticides. It is birdfriendly as it is shade-grown coffee where natural
shade (canopy trees) is used to shelter coffee plants
during parts of the growing season. Nepalese coffee
is Organic, grown without the use of potentially
harmful artificial pesticides or fertilizers under strict

As discussed earlier, coffee is planted on marginal

uplands where single crop of maize and in few cases
second crop of millet planted. The study reported
that annual net return from maize cultivation was
Rs 7,890 per ha per annum and it was Rs 10,368 per
ha per annum from millet cultivation. From these
figures it can be seen that net return from coffee
cultivation is 4.33 times higher than maize, 3.30 times
higher than millet and 1.87 times higher than maize
followed by millet cultivation. Comparative benefits
of coffee, coffee with Banana, coffee with ginger,
maize, and millet cultivation are depicted in Table 1.

Average of costs and returns for 30 years.

Table 1:

Comparison of net returns from

coffee and its alternative crops
cultivation
Crops

Net return
(Rs/ha/
year)

Net returns compared to

Maize

Millet

Maize+Millet

Coffee

34,190

4.33

3.30

1.87

Coffee+Banana

61,774

7.83

5.96

3.38

Coffee+Ginger

51,683

6.55

4.98

2.83

Maize

7,890

1.0

0.76

0.43

Millet

10,368

1.31

1.0

0.56

Maize+millet

18,258

2.31

1.76

1.0

Source: COPP 2009.

2.4.2 Returns over investment

Because there is no production from coffee
plantation until third year and less than optimum
yield up to sixth year, simple average figures are not
enough to judge the additional income derived from
coffee production compared to traditional crops.
Therefore, payback period and discounted indicators
of profitability measurements such as Net Present
Value (NPV), Benefit Cost (BC) Ratio and Internal Rate
of Return (IRR) are calculated to estimate the level of
additional income derived from coffee cultivation
compared to traditional crops.

It is estimated that one can earn a net benefit of Rs

151,431 per ha after discounting the future value
at 10% over a period of 30 years if only coffee is
cultivated on unused land. Similarly, if ginger is
cultivated as intercrop with coffee Net Present Value
(NPV) at 10 % increases to Rs 206,884 per ha and if
banana is cultivated with coffee it increases to Rs
380,068 per ha over a period of 30 years. The IRR is
estimated at 19%, 26.9% and 32.5% respectively,
with coffee alone, coffee+ginger and coffee+banana
cultivation. Benefit cost ratio is 1.5, 1.6 and 1.9,
respectively, with coffee alone, coffee+ginger and
coffee+banana cultivation. All the investments are
recovered in 7.5 years if only coffee is cultivated, in
6.2 years if coffee and ginger is cultivated and in 5.3
years if coffee and banana is cultivated (Table 2)
An estimation of the benefit of coffee cultivation
replacing other crops is provided in Table 2. Annual
net benefit from the crop being replaced by coffee
is subtracted from annual benefit from coffee to
estimate those indicators. Estimates of the financial
indicators in the case of coffee replacing maize and
millets are presented in column 4 and 5 of Table 2
which shows that it takes 10 years to recover all of the
investments if coffee replaces millet. Payback period,
however, would reduce to 8.1 years and 6.2 years if
coffee+ginger and coffee+banana are cultivated on
the land being used to cultivate millet.

Table 2: Indicators of Rate of Returns from Coffee Cultivation on land used

for different purposes
Crops

Indicators
Unused land

Replaced maize

Replaced millet

Coffee

Payback period (years)

7.5

9.2

10.0

NPV @ 10% (Rs/ha)

151,431

77,052

53,692

IRR (%)

19.0

14.3

13.0

BC Ratio

1.5

1.2

1.1

Payback period (years)

6.2

7.3

8.1

NPV @ 10% (Rs/ha)

206,884

132,502

109,144

IRR (%)

26.9

19.8

17.8

BC Ratio

1.6

1.3

1.2

Payback period (years)

5.3

6.1

6.2

NPV @ 10% (Rs/ha)

380,068

305,688

282,328

IRR (%)

32.5

26.8

25.2

BC Ratio

1.9

1.6

1.5

Coffee + (Ginger first four years)

Coffee +Banana

Source: Base data from COPP 2009.

3.

Coffee intercropped for the first four years of plantation only.

Planted on

Based on a survey conducted in Gulmi and Kavre

districts Kattel (2009) estimated that coffee accounts
for 13.4 percent of total income of coffee farmers,
on an average. The author describes this income as
3-Dimensional because it comes from three different
outputs of coffee farming: 8.1 percent from coffee in
terms of fresh cherry, 3.3 percent from shade trees
in terms of fruit, fodder and/or firewood and 2.1
percent from intercrops such as ginger, turmeric and
cardamom.

2.4.3 Employment Generation

Coffee is a much more labor-intensive crop than
alternative crops of the same regions such as maize,
millet and wheat as it is not subject to automation
and requires constant attention. Most of the
employment is generated during harvesting season,
mid-December to end of February in the Nepalese
context, when there are very little agricultural
related activities to be performed in other crop
sector. Nursery management, pit digging, filling and
planting are other activities that provide employment
to rural populace.
It provides additional employment not only to the
concerned farmer but also to those that are not
involved in coffee cultivation, especially landless and
marginal farmers. This is important at the present
context as the industrial growth is disappointing and
youths have to resort on foreign employment.

2.5 Production and Marketing

2.5.1 Area and Production
There are two main varieties of coffee being
cultivated: Arabica and Robusta. Arabica coffee
trees are more delicate, must be grown at higher
elevations4, and yield fewer beans per tree per
growing season. Robusta coffee trees are much
hardier, may be grown at lower elevations, and have
a high bean yield. Of the two, Arabica beget the
better beans - and about 70 percent of the harvest
in the world. The harsher Robusta tree account for
about 30 percent of the world's production and are
used for "mainstream" (lower quality) coffee blends
(http://www.nationalgeographic.com/coffee/frame.
html). Arabica is being cultivated in Nepal because of
its quality as demanded by specialty market.
Coffee can be commercially produced in many parts
of the country. However, there is great potentiality
in mid hills region for organic coffee production as
it has got suitable climate, topography, soil, relative
humidity, temperature and rainfall for Arabica coffee.
Some Districts like Gulmi, Palpa, Argakhanchi,
Lalitpur,Tanahu, Kavrepalanchok, Sindhupalchowk,
Lamjung, Kaski, Gorkha, Syangja, Parbat, Baglung are
successfully growing and producing Coffee. Similarly,
coffee is being cultivated in other 26 districts of midhill region of Nepal (http://www. teacoffee.gov.np/
index about coffee.php).

Table 3: Area and Production of Coffee in Nepal, 2009/10

Districts

Area ha)

Green bean (mt)

Districts

Area (ha)

Green bean (mt)

Palpa

183

19.9

Ilam

42

10

Gulmi

112

44.1

Khotang

Arghakhachi

76

13

Panchthar

12

4.5

Syangja

230

47.2

Udyapur

Kaski

85

24

Lalitpur

99

44

Parbat

45

9.5

Sindhupalchok

85

15.8

Lamjung

149

14.5

Kavrepalanchok

112

33.9

Gorkha

95

Nuwakot

77

27.7

Baglung

39

12

Dhading

30

Tanahu

52

Makawanpur

25

Mayagdi

12

Other Districts

40

12

Sankhuwashava

18

Total

1630

343

Source: National Tea and Coffee Development Board, 2068 (page 66)

4.

In Nepal, mid-hill locations with an altitude of 800 to 1500 meters above sea level are considered suitable for organic coffee cultivation.

In 2009/10 a total of 1,630 ha of land was planted with

coffee and production was recorded at 343 mt green
beans. The low yield rate was because large parts of
coffee plants are young (less than five years of age)
that have not started bearing fruit or are producing
small quantity. Syangja district had the largest area
under coffee (230 ha) that produced over 47.2 mt
green beans in 2009/10 (Table-3).

2.5.2 Processing and Marketing

In Nepal, wet processing technique is used to process
coffee cherry to beans, except in a few cases where
either farmers are too far from pulping facility or they
try to use rejected cherry (those that float on normal
water). Four steps are followed in processing cherry
to parchment at the village level.
Ripe fresh cherry are put into water and those that
float are rejected. Rest of the cherry are pulped
using manual or semi-manual pulping machine, at

the village level. Pulping is done within 24 hours of

picking the cherry. After pulping, fermentation is
required to remove mucilage from parchment. The
parchment is then fermented for 24 to 48 hours,
depending upon temperature of the location, in
plastic drums or plastic bags. Timing of fermentation
is very important as less than enough fermentation
results in mucilage remaining on parchment and
more fermentation results in foul smell. The wet
parchment is then washed 3 to 4 times manually to
remove mucilage completely. It is dried for several
days until moisture content drops to 11 to 13% (refer
Figure 2 for processes and recovery rates). The dried
parchment is stored or sold to traders or District
Cooperative Union/Federation that have hulling
facility. Most of the export of coffee from Nepal is in
term of green bean that is produced by hulling the
parchment.
Nepali coffee had a long way to travel from a means

Figure 2: Wet Processing Process and Average Recovery of Coffee

100 kg Fresh Cherry

(Rs 30-40/kg)
Pulping

46 kg Pulp

54 kg Parchment+Mucilage
Fermentation & Washing

11 kg Mucilage

43 kg Parchment
Drying

23 kg dry parchment
(Rs 145-175/kg)

20 kg Moisture

Hulling

4.5 kg Pulp

18.5 kg green beans

Sorting

1.5 kg green beans for local

market (Rs. 500-600/kg)

16.5 kg green beans for export

($7-10/kg)

Roasting
Source:
(1) Process and product - Dhungana, GP,
2068, COFFEE PRASODHAN PRABIDHI,
in Tea-Coffee Smarika-2068, National
Tea and Coffee Development Board,
Kathmandu.
(2) Values estimated based
consultation with key informants.

on

0.4 kg moisture
+silver skin

0.4 kg roasted
beans

2.8 kg moisture
+silver skin

13.9 kg roasted
beans

coffee. The US, Japan, South Korea, Canada, UAE and

European countries are the major buyers of Nepali
coffee.

Figure 3: Trend of Coffee

Export from Nepal

Export (mt)

150
100
50

/1
0
09

/0
8

20

07

/0
6

20

05

/0
4

20

03

/0
2

20

01

/0
0

20

99

/9
8

19

97

19

19

95

/9
6

Year

of soil conservation plant, to traditionally processed

household drinks to international market as specialty
coffee. According to NTCDB record about 5 mt coffee
was exported in 1995/96 which declined to 4 mt and
2 mt in subsequent year. Export increased to 3 ton
in 1998/99 and continued increasing with a record
export of 120 mt in 2009/10 (Figure 3).
Coffee stakeholders estimate that about 65 percent
of coffee produced in Nepal is exported. However,
official record shows that about 36 to 53% of total
green beans were exported in last three years. Table
4 shows time series data on production and trade of

According to a recent report of Nepali daily, export of

green beans to third country touched 120 mt marks
in the first 8 months of current fiscal year 2010/11.
This quantity is at par with last years total export.
It is expected that total export in the current fiscal
year will be more than 150 mt5. Coffee export also
has been contributor of foreign currency. Value of
coffee export was worth about 40 million Rupees in
2006/07. Value of export in recent years is, however,
not available.
Despite increasing production of coffee in Nepal
import of the same has not been declining in the
past. This may be due to the lack of information and
adequate publicity about Nepali coffee and the taste
preference for the imported instant coffee: almost all
the coffee that is imported to Nepal is instant type.
One of the reasons of increased consumption of
Nepali coffee in domestic market is due to foreigners
preferring filter coffee than the instant (Kattel, 2009).

2.6 Major Stakeholders

Nepal Coffee Producers Association (NCPA) record
shows that 27,730 farmers are cultivating coffee in
Nepal, only a few of them in commercial

Table 4: Production and Trade of Coffee in Nepal

Year

Dry cherry Production (mt)

Parchment Production (mt)

Green Bean Export (mt)

Export (Rs. 000)

Import (Rs. 000)

1995/96

29.20

5.04

638

23,832

1996/97

37.35

4.25

6 ,023

15,316

1997/98

55.90

2.00

318

16,264

1998/99

44.50

3.1

634

32,471

1999/00

72.40

4.25

1,415

36,437

2000/01

88.70

3.68

673

43,200

2001/02

139.20

9.08

2,455

4,621

2002/03

139.20

16.86

5,205

142

2003/04

217.60

24.30

5,947

410

2004/05

250.00

35.68

1,966

168

2005/06

391.00

91.50

27,678

2,265

2006/07

270.00

100.18

40,117

56,000

2007/08

265.00

112.00

2008/09

334.00

112.00

NA

84,400

2009/10

417.00

120.00

NA

54,400

64,481

Source: National Tea and Coffee Development Board, 2068 (page 65)

5.

The Kathmandu Post, June 14, 2011.

scale. Majority (90%) of those coffee farmers are

associated with DCPA. Scattered settlements,
inaccessibility of the specific locations and very small
scale (less than 50 plants) are some of the reasons
that 2,750 coffee farmers have not joined the DCPA.
Apart from growers there are several individual
and organizations involved in coffee value chain,
especially in trading, processing and export. Of the
eleven institutions involved in coffee processing
and trade, two are cooperatives and remaining 9
are registered as companies. Four of them supply
to domestic market and to exporters while six of
them export coffee in addition to supply to domestic
markets. A list of registered coffee processor and
traders can be found in Annex II.3. The Coffee and

Tea Development Section (CTDS) under the Fruit

Development Directorate of the Department of
Agriculture, National Tea and Coffee Development
Board (NTCDB), Nepal Coffee Producers Association
(NCPA), Coffee Promotion Program of Helvetas Nepal
have been assisting coffee production and trade in
domestic and export markets. At the district level
there are 14 District Coffee Producers Associations
and more are under process of registration. Each of
those institutions is involved in promotion and/or
value addition in coffee sub-sector. Functions within
the coffee value chain, actors involved in different
stages and enablers are depicted in Figure 4.

District
Cooperative
Unions

Processors
cum Traders

Primary
Processing

Plumping Centre

Cherry
Production

Input
Supply

Coffee Growers

Inputs/
machinery
equipment
suppliers

Functions
Source: Mapped based on interaction with concerned stakeholders.

10

Nursery
Owners

Actors

Enablers

International/National Non- Governmental Organization

Exporters
Nepal Coffee Producers Association & National Tea and Coffee Dev. Board

District
Traders

Agricultural Development Bank and Other micro-credit institution

Hulling/
Roasting

International
market (Mostly
Green Beans)

District Coffee Producers Association

Trading

Domestic
Consumer
(Ground
Coffee)

Nepal Agriculture Research Council

Retailing

Tea & Coffee Dev. Section & District Agriculture

Dev. Offices, DOA

Figure 4: Simplified Value Chain Map of Nepali Coffee

2.7 Potentials
Experts working in coffee sub-sector opine that there
is substantial scope of increasing organic coffee
production in the country. A GIS database developed
with PACT initiation shows that out of 9,108 ha land
suitable for coffee cultivation in Kavrepalanchok
district, only 112 ha is planted to coffee at present.
This clearly means that coffee area can be increased
by more than 80 times in the district. Though, there
has not been detailed survey of potential coffee area,
the example of Kavrepalanchok districts seems to
be true for most of the coffee producing district as
well. Assuming five percent of the potential land can
be brought under coffee in near future, area under
coffee can be increased to 6500 ha in 5-6 years from
1630 ha in 2009/10.
Experience has proved that coffee cultivation is much
more remunerative that traditional crops. A farmer
can earn 4.3 times more than maize cultivation
and 3.3 times more than millet cultivation from
coffee. Employment generation and environmental
protection are other obvious benefits from coffee.
Marketing of organic coffee has not been a problem
in the past which can be seen from growing quantity
of export every year. There is also large scope of
import substitution as Nepal has been spending 54
to 84 million Rupees for import of coffee in the recent
past.
Nepal can greatly benefit from increasing organic
farming practices as the country does not produce
chemical fertilizer. Very small quantity expensive
imported fertilizer is being used in cultivation of
other crops. Hard earned currency can, therefore, be
saved and utilized for other development purposes
if organic coffee replaces existing cereal crop
production.

2.8 Constraints
Despite Nepalese farmers accepting coffee as high
value agricultural commodity, commercialization
has not been happened in its real sense. Most of
the coffee production takes place in small plots,
involving large number of small farmers resulting in
scattered plants along large geographic area. Being
marginal and small farmer his/her first priority goes
to crops that provide return in shortest possible time.
As coffee production at full scale starts from 5th
to 6th year, poor farmers cannot wait without any
alternative sources of livelihood.
Nepali coffee has also faced problem to maintain its
inherent quality due to poor processing facilities.
Pulping, fermentation and drying facilities at farmers
field level are poor.

Though Nepal has initiated organic production

program, quantity is very small to compete into
international market. In many instances traders
complain that they were not able to sell in
international market due to limited consignment or
paid higher prices due to air transport.
There is almost no or negligible Research and
Development (R&D) works done in coffee in Nepal. It
is not properly known about which variety is suitable
for certain altitude, aspect and soil type. White
stem Borer has been a serious threat to increase the
production as many coffee plantations have been
wiped out due to its attack. There is no sufficient
technical manpower to tackle such problems.

2.9 Possible intervention areas:

Past experience of coffee development in Nepal
shows that this sub-sector requires multi-dimensional
development plan to harness the potentials.
Following are some of the major programs that will
yield desirable results.

2.9.1 Research and development

A well equipped research center need to be
established within coffee growing region. Major
research thrust need to be on identification/
development of varieties suitable for different
altitude, aspects and soil types. Appropriate method
for white grub and other pest control is urgently
required. Research is also required on most suitable
types of shade trees, spacing, and other agronomic
practices.

2.9.2 Increased size of orchard

Most of the coffee production takes place in
small-scale orchards. This practice makes organic
certification not only expensive but also almost
impossible in some cases. Small holding of the
farmers and their immediate need of food crops
prevents them to bring all of their land under coffee
cultivation. There are two options to tackle this
problem: one, that some sort of alternative means of
livelihoods be provide until coffee starts bearing fruit
in its full swing, and two, expand coffee production
to remote inner parts of rural area with provision of
extended road infrastructure.

2.9.3 Organic certification and

quality control
Part of the certification process is internal control
system. Farmers need to be trained on this practice.
Arrangement is also required to recruit technicians
who will regularly visit the farmers to provide much
11

needed technical help. In national level, an accredited

certifying institution should be developed and/
or strengthened. A system of branding specialty
coffee is also required to sustain the export market.
One of the examples is separate treatment of coffee
produced in certain altitudes.

2.9.4 Infrastructure and Mechanization

Coffee being relatively new comer in Nepalese
agriculture, it is lacking in infrastructure. Often the
quality is deteriorated in the absence of appropriate
drying and storage facility. Similarly, quality also
deteriorates as parchments from different small
pulping centers (mostly using manually operated
pulper) are mixed to make sizable amount. A few
better quality and larger scale processing facility will
be great help to this sector.

2.10 Summary and Conclusion

Entered in to Nepal without fanfare by a hermit,
coffee passed several stages from interesting plant,
soil conserving plant etc. to commercially viable high
value agricultural commodity. Its specialty of being
organic, Himalayan, and high altitude has attracted
attention of international market. Contribution of
NCPA, DCPA and coffee farmers and traders has
been commendable. The government of Nepal has
approved Nepali coffee logo and awarded to three
traders in 2010. However, there are bigger efforts
required to maintain the prestige of Nepali coffee.
Despite Nepalese farmers accepting coffee as high
value agricultural commodity, commercialization has
not been done in its real sense. Most of the coffee
production takes place in small plots, involving large
number of small farmers. Almost 90 percent of those
farmers are organized in to groups and cooperatives
and are registered to DCPA and Department of
Cooperative, respectively. NCPA in consultation with
NTCDB and COPP of Helvetas Nepal have developed
and enforced the standards to be maintained in
organic coffee production. Remaining 10 percent
coffee farmers are continuing coffee production on

12

their own and are not abided by the set standards.

They are also vulnerable in marketing of their
product.
Coffee production increased by almost 12 times in
the last one decade. Similar is the case of export. It has
been one of the major sources of foreign exchange
earnings. In the domestic front, consumption of
Nepali ground coffee is not catching up fast mainly
due to lack of awareness of the benefits from organic
coffee and habit of consuming tea and instant coffee.
Concerned authorities need to give attention on this
matter for two reasons: first, it saves hard earned
foreign currency being spent on instant coffee
import and second, we cannot always depend on
foreign market for our products.
Coffee cultivation is much more remunerative
compared to traditional crops such as maize and
millets. It provides 4.3 times higher net return
than maize, 3.3 times higher net return than millet
cultivation and 1.9 times higher net return than
maize and millet combined. Those figures would be
much higher if coffee is intercropped with ginger
as intercrop and banana as double purpose plant:
fruits and shade. Internal rate of return of coffee
orchard are estimated at 19 percent, 26.9 percent
and 32.5 percent for coffee alone, coffee+ginger and
coffee+banana, respectively assuming a 30 years
average life of orchard. Since these estimates are
based on average figures derived from a survey of
farmers including small-scale that kept less than 50
plants, the benefit from commercial orchard would
be higher. Another advantage of coffee farming
is employment generation. Coffee cherry picking
coincides with a season when there is minimal
demand of labor for other crops, providing additional
job not only to the concerned farmers but also to
marginal farmers and land less laborers.
In the background of obvious comparative advantage
of coffee cultivation and growing international
demand of specialty organic Nepali coffee, it is high
time to consider commercialization of this high value
commodity from all sectors including government,
donors, investors and coffee stakeholders.

Annex II.1: World Coffee History

Year

Activities

850

First known discovery of coffee berries. Legend of goat herder Kaldi of Ethiopia who notices goats are friskier after eating
red berries of a local shrub. Experiments with the berries himself and begins to feel happier.

1100

The first coffee trees are cultivated on the Arabian peninsula. Coffee is first roasted and boiled by Arabs making "qahwa"
--- a beverage made from plants.

1475

The worlds first coffee shop opens in Constantinople. It is followed by the establishment of two coffee houses in 1554.

1600

Coffee enters Europe through the port of Venice. The first coffeehouse opens in Italy in 1654.

1607

Coffee is introduced to the New World by Captain John Smith, founder of Virginia at Jamestown. Some Canadian historians claim it arrived in previously settled Canada.

1652

The first coffeehouse opens in England. Coffeehouses are called "penny universities" (a penny is charged for admission
and a cup of coffee). Edward Lloyd's coffeehouse opens in 1688. It eventually becomes Lloyd's of London, the world's
best known insurance company. The word TIPS is coined in an English coffee house: A sign reading To Insure Prompt
Service (TIPS) was place by a cup. Those desiring prompt service and better seating threw a coin into a tin.

1672

The opening of the first Parisian cafe dedicated to serving coffee. In 1713, King Louis XIV is presented with a coffee tree.
It is believed that sugar was first used as an additive in his court.

1683

The first coffeehouse opens in Vienna. The Turks, defeated in battle, leave sacks of coffee behind.

1690

The Dutch become the first to transport and cultivate coffee commercially. Coffee is smuggled out of the Arab port of
Mocha and transported to Ceylon and East Indies for cultivation.

1721

The first coffeehouse opens in Berlin.

1723

Coffee Plants are introduced in the Americas for cultivation. Gabriel de Clieu, a French naval officer, transports a seedling
to Martinique. By 1777, 1920 million coffee plants are cultivated on the island.

1727

The Brazilian coffee industry gets its start from seedlings smuggled out of Paris.

1750

One of Europe's first coffeehouses, Cafe Greco, opens in Rome. By 1763, Venice has over 2,000 coffee shops

1822

The prototype of the first espresso machine is created in France.

1885

A process of using natural gas and hot air becomes the most popular method of roasting coffee.

1900

Kaffeeklatsch, afternoon coffee, becomes popular in Germany.

1905

The first commercial espresso machine is manufactured in Italy.

1908

The invention of the worlds first drip coffeemaker. Melitta Bentz makes a filter using blotting paper.

1933

Dr. Ernest Illy develops the first automatic espresso machine.

1938

Nescaf instant coffee is invented by the Nestl company as it assists the Brazilian government in solving its coffee
surplus problem.

1945

Achilles Gaggia perfects the espresso machine with a piston that creates a high pressure extraction to produce a thick
layer of crema

1991

Caff Carissimi Canada, a network of espresso service providers is formed in Canada, modeled after a visit to Franco
Carissimi (roaster and equipment manufacturer) in Bergamo Italy. It becomes the fastest growing network of private and
independent super automatic machines providers in Canada.

1995

Coffee is the worlds most popular beverage. More than 400 billion cups are consumed each year. It is a world commodity that is second only to oil.

Source: http://www.koffeekorner.com/koffeehistory.htm

13

Annex II.2: History of development of Coffee Sub-sector

in Nepal
Year

Activities

1938

Introduction of coffee in Anpchaur, Gulmi district by Mr. Hira Giri from Myanmar.

1968

Seeds from India were distributed by ADB/N in Gulmi, Palpa and Arghakhanchi.

1977

Import of seed from India for distribution.

1981

Initiation of commercial coffee production and nursery establishment at commercial scale. First commercial nursery
established by Pareshwor Kharal in Aanpchaur, Gulmi.

1982

First sapling distribution at subsidized rate in Palpa by Tinau Watershed Project of the then SATA

1983

Nepal Coffee Company (NeCCo), first coffee mill in Nepal, established in Manigram, Rupandehi.

1984

Establishment of Coffee Development Centre in Aanpchaur, Gulmi.

1989

Ghimire Nursery and Coffe Production Centre initiated organic coffee production in Palpla, Madan Pokhara.

1990

Group of farmers organized in Madan Pokhara, Palpa and formed Coffee Producer Group Madan Pokhara. (30 Kartik)

1991

Registration of Nepal Coffee Producers Association Palpa in Palpa district.

1993

Formation of district committee of the coffee producers association (DCCPA) in Syangja

Establishment of Tea and Coffee Development Section under the Fruit Development Directorate of the Department of
Agriculture
Tea Development Corporation was reorganized into the National Board, coffee was also incorporated and the board
renamed as National Tea and Coffee Development Board under the National Tea and Coffee Development Board Act
2049 (1993).

1994

District Coffee Producers' Association (DCPA) Kavre registered with District Administrative Office (DAO).
Formation of DCCPA in Gulmi.
First recorded export of green beans (dry processed) by ECM (coffee collected from NeCCO) to Japan.

1995

Establishment of Nepal Organic Products in Palpa.

Establishment of Plantec Incorporated
DCPA Kaski registered with DAO.
Establishment of Regional office of NTCDB in Palpa.

1996

LISP, in collaboration with coffee producers association, initiated coffee related activities in Palpa
Establishment of Everest Coffee Mill in Kavre.
Organic Certification of coffee under District Cooperative Federation, Gulmi.

1997

First training on organic coffee production (one week long training attended by Leader Farmers from Gorkha, Lamjung,
Palpa, Gulmi, Syangja, Kavre, Kaski and Baglung) organized at Madanpokhara, Palpa.
NCPA Palpa decided to go organic with the consent of the coffee producers.
Formation of Central Committee of Nepal Coffee Producers Association (NCPA).

1998

Registration of NCPA as a central association of the coffee producers.

1999

DCCPA Sindhupalchowk formed.

SSMP in collaboration with NCPA initiated coffee related activities in Syangja, Parbat, Kavre and Sindhupalchowk
Introduction of wet processing technology (11 pulpers from India) by AEC

2000

DCCPA Parbat formed

DCCPA Gulmi formed.
Establishment of Highland Coffee Promotion Company in Kathmandu.

2001

Multi stakeholder workshop to explore the potential role of SDC for coffee promotion in Nepal.

2002

Initiation of coffee FFS in Palpa, Parbat, Syangja, Kavre and Sindhupalchowk (LISP/NCPA)
Initiation of Farmer to Farmer Program in Syangja (Winrock/NCPA/DADO).
Registration of DCPA Kavre renewed with District Administrative Office (Chaitra 2058).
Registration of DCPA Syangja with District Administrative Office (Chaitra 2058).
First recorded export of wet processed green beans (estate coffee) by Plantec to UK

14

2003

NTCDB for the first time fixed dry cherry price based on the quality (three grades) of dry cherries.
Introduction of wooden Hand-pulpers from Indonesia by Holland Coffee Inc.

2004

DCPA Lalitpur (Magh 2060), Parbat (Magh 2060), Palpa (Magh 2060), Gulmi (Chitra 2060), Sindhupalchowk (Chaitra 2060),
Lamjung, Gorkha, Tanahu, Arghakhanchi registered with respective DAOs.
Coffee policy implemented
NCPA registered as the federation of DCPAs.
Tea and Coffee Development Section was reorganized with increased program thrust on coffee and additional manpower.

2005

First training on internal control system and Internal Inspection conducted at Gulmi by CoPP/HN in collaboration with
DCF/G.

2010

Nepal Coffee Logo approved by the Government of Nepal

2011

Nepal Coffee Logo awarded to three traders.

Source: Office record of Coffee Promotion Program, Helvetas Nepal

Annex II.3: Major Coffee Processors and Traders of Nepal, 2009

Processor/Traders

Brand Name

Market

Contact Person

Telephone

E-mail

Plantec Nepal
Incorporated (P)
Ltd., Kathmandu,
Nepal. URL: www.
plantecnepal.com

Jalpa Gold (for

regional sales) and
Mount Everest Supreme (for export)

Export and Domestic (Roaster)

Mr. Ujjal Rana

977-1-4416327

unicorn@ccsl.
com.np

District Cooperative Federation Ltd.,

Coffee Purification
Centre , Johang,
Gulmi

Gulmi Organic
Coffee

Export and Domestic (Roaster)

Mr. Pharsu Ram

Acharya

977-79-520320

gulmi_coffee@
yahoo.com

Royal Everest Coffee

Mills, Keshar Mahal,
GPO Box: 3479,
Kathmandu, Nepal

Everest Filter Coffee

Export & Domestic

(Roaster & Brewer)

Mr. Phul Kumar

Lama

977-1-4280258, Fax:
4410925

information@everestcoffee.com

Highland Coffee
Promotion Co. Ltd.,
Narephant, Koteshwor, GPO Box:
21037, Kathmandu,
Nepal

Him Caf

Export and Domestic (Roaster)

Mr. Krishna Ghimire

977-1-4229796,
977-1-6220474, Fax:
4267239

hcpcl@info.com.np,
info@highlandcoffeenepal.com

Buddha Organic
Coffee Industries
P. Ltd., Kirtipur-2,
Kathmandu, Nepal

Buddha Organic
Coffee

Export and Domestic (Roaster)

Dhruba Raj B.K.

9851081427

buddha.organic@
yahoo.com

Kathmandu International Coffee House,

Himalayan Java,
Kathmandu, Nepal

Himalayan Java

Domestic (Brewer)

Mr. Gagan Pradhan

4416692, 4422519

himalayan-java@
hotmail.com

Nepal Organic
Coffee Products,
Madanpokhara,
Palpa, Nepal

Morning Fresh

Domestic (Roaster &

Brewer)

Mrs. Shanti Devi

Ghimire

977-1-6215842,
9851091677

nocp@wlink.com.
np

High Mountain Organic Coffee (P) Ltd.,

Bhaisepati, Saibu-3,
Lalitpur, Nepal

Organic Coffee

Domestic (Roaster)

Min Raj and Ramesh

Dulal

9841411344

minrajlcl@wlink.
com.np

15

Shiva Agro Tourism Private Ltd.,

Pokhara, Nepal

Himal Coffee

Domestic (Roaster)

Bishwabandhu
Pokhrel

9804151503,
9804178930

Gaurishankar
Organic Coffee
Industry, Panchkhal,
Kavre

Gaurishankar Coffee

Roaster & Brewer

Yet Raj Timilsina

9741048014,
6212859

Coffee Cooperative
Union, Lalitpur

Lalitpur coffee,
Jureli coffee

Export and Domestic (Roaster)

Mr. Balbahadur KC

Source: Office record of Coffee Promotion Program, Helvetas, Nepal

References
Dhungana, GP, 2068, COFFEE PRASODHAN PRABIDHI, in Tea-Coffee Smarika-2068,
National Tea and Coffee Development Board, Kathmandu.
Coffee Promotion Program 2011. Annual Plan 2011. CoPP, Helvetas, Kathmandu.
Coffee Promotion Program 2010. Annual Report 2010. CoPP, Helvetas, Kathmandu.
Agribusiness Promotion and Market Development Directorate, 2010. Cost of
Productionand and Marketing Margin of Cereals, Cash crops, Vegetable & Spices
Crops, Nepal. DOA, Kathmandu.
Agri-business Promotion & Marketing Development Directorate, 2009. Agricultural
Marketing Information Bulletin, Special Issue-2009. APMDD, DOA, Kathmandu.
Agri-business Promotion & Statistic Division, 2010. Statistical Information on Nepalese
Agriculture 2009/10. APSD, MOAC, Kathamndu.
National Tea and Coffee Development Board, 2009. Strategic Plan for Moving Forward
Nepals Coffee Sector for 2009 to 2011. NTCDB, Kathmandu.
COPP, 2010, A Study of Domestic Coffee Market in Nepal, Report prepared by
Ashok Poudyal and Rajendra Pandit for Coffee Promotion Program, Helvetas, Nepal,
Kathmandu.
COPP, 2009. A Study on Production Cost and Margins of Coffee in Sindhupalchok
District, Report prepared by KR Kandel for Coffee Promotion Program (COPP), Helvetas
Nepal, Kathmandu.
Kattel, RR, 2009. The impact of coffee production on Nepali smallholders in the value
chain, MSc thesis submitted to Leibniz University, Hannover, Germany.

Websites
http://en.wikipedia.org/wiki/ economics of coffee
http://www.coffeeresearch.org/coffee/history.htm
http://www.nationalgeographic.com/coffee/frame.html
whttp://www.teacoffee.gov.np/index about coffee.php

16

himalcoffee@
yahoo.com

Lalitpur-coffee@
yahoo.com

3. WORKSHOP PAPERS
3.1 Importance of Coffee Sub-Sector Analysis
Yogendra K. Karki6

Coffee in Nepal
The importance of agriculture sector in Nepal is reflected by its 35% share to
national GDP and absorption of 66% labor force. This sector has been, however,
characterized by traditional subsistence orientated farming. Around 47%
households have less than 0.5 ha of lands (CBS, 2006). The subsistence orientation
of Nepalese farming practice also limited contribution to income growth and
poverty reduction. The situation is changing slowly after Agriculture Perspective
Plan (APP 1994/95-2014/15) strategy and importance given to commercialization
of high value crops by the periodic plans implemented after APP. Coffee is one of
the new comers in the list of high value crops. It is being cultivated in 40 mid-hill
districts and also slowly expanding to other mid-hill districts recently (Figure1).
Figure 1: Major Coffee Producing

Districts

China

India

Latest available data shows that 1,650 ha of land was planted with coffee producing
308 mt of green beans in 2009/10. District wise data on coffee area and production is
compiled in Table 1.
With the existence of favorable climatic condition together with characteristics of
coffee plants that grow well on rainfed uplands less suitable to other crops, the
smallholder farmers are being positively attracted toward coffee farming in Nepal.
Coffee provides 5 times more income than that of maize and millets and 2-3 times

6.

Mr. Yogendra Kumar Karki is the Project Director, Project for Agriculture Commercialization and Trade, Kathmandu, Nepal.

17

Table 1: Area and Production of Coffee in Nepal

Districts

Area ha)

Parchment (mt)

Districts

Area (ha)

Green bean (mt)

Palpa

188

22.7

Ilam

45

15.0

Gulmi

112

45.2

Rasuwa

32

1.0

Arghakhachi

76

23.5

Panchthar

230

48.4

Lalitpur

Kaski

95

24.6

Sindhupalchok

87

17.3

Parbat

45

9.5

Kavrepalanchok

130

35.0

149

15.0

Nuwakot

79

30.5

95

5.5

Dhading

35

6.5

Syangja

Lamjung
Gorkha

33

7.0

115

47.8

Baglung

42

14.7

Makawanpur

25

4.0

Tanahu

52

4.0

Other Districts

47

19.3

Mayagdi

12

2.0

Sankhuwashava

18

3.0

1752

401.5

Total

Source: National Tea and Coffee Development Board, 2069 (Page 79)

more yield than that of any other cash crop (Kattel,

2009). As a result, the area of coffee in Nepal has been
increasing. As per official statistics, the area under
coffee was 220 ha in 1995/96 which increased to
1650 ha in 2010/11. Similarly, the production of coffee
increased several times since then (NTCDB, 2011).
The ecological settings in the Himalayan hills provide
Nepalese coffee a unique opportunity to enter
international specialty markets. Nepali coffee has been
exported as high altitude grown coffee produced by
resource poor smallholders under organic conditions.
However, coffee being relatively new crop the entire
sub-sector chain from certified organic production,
through quality processing and handling, to domestic
and international marketing is yet to be established
properly.
Since coffee in Nepal is planted mostly by resource

poor smallholder farmers, coffee has become source

of cash income to fulfill the household requirement.
Present trend to expansion in farmers level shows
that coffee could be one of the high value agricultural
produce as a niche product for export. The trend of
export has been very impressive. The total export of
coffee from Nepal increased to 120 MT in 2009/10
from 5 MT in 1995/96. Coffee has huge opportunity to
export in international market, which would provide
higher economic benefit to the smallholder.
However, there is a lack of sufficient market information,
quality improvement and value additional scheme
in Nepali coffee sub-sector. The farmers do not have
adequate opportunities to add value. Due to the
scattered and remote area of coffee plantation and
also insufficient processing facilities, the marketing of
coffee is not within the control of farmers.

Figure 2: Sales of Nepali Coffee in Domestic and International Market Year

2006 to 2010 (in mt)
250

233

200

179

177

171

150

Domestic Market

110

International Market

100

Total

50
0

2006

2007

Source : Coffee Promotion Programme, Helvetas, 2010

18

2008

2009

2010

Figure 3: Sources of domestic

coffee consumption

Import
56%
Source : Coffee Promotion Programme, Helvetas, 2010

Though the coffee industry has been growing fast,

there are several problems. The main problem is
market. Because of limited quantity Nepalese coffee
has not been able to influence in international market
despite being unique in nature. It is very important to
understand the stakeholders and their value addition
activities to improve the performance of the subsector.

Value Chain Concept and its Importance

The value chain concept was developed and
popularized in 1985 by Michael Porter in Competitive
Advantage, a seminal work on the implementation
of competitive strategy to achieve superior business
performance. Porter (1998) suggested that a set of
interrelated generic activities, primary and Support
activities, (Figure 4) within the organization add value
to the service and product that the organization
produces.
The value chain describes the full range of activities,
which are required to bring a product or service
from conception, through the different phases of
production (involving a combination of physical
transformation and the input of various producer
services), delivery to the final consumer, and final
disposal after use (Kaplinsky & Morris, 2001).
This idea was built upon the insight that an
organization is more than a random compilation

Suupport Activity

Firm Infrastructure
Human Resource Management
Technical Development
Procurement

Inbound
Logisticcs

Operations

Outbound
Logistics

Marketing
& Sales

Services

Ma
rgi
n

Domestic
44%

Figure 4: The Basic Model of

Porters Value Chain

n
rgi
Ma

Because coffee is relatively new crop, its trade has not

been as common as other crops. A few traders have
established linkages with importers in destination
countries. Farmers have very few choices of outlets.
Even for local markets it is not easy for commoners
to enter into market as it needs specific handling/
processing techniques to maintain the quality. As a
result large volume of coffee is being imported for
domestic consumption (Figure 3).

Primary Activity

of machinery, equipment, people and money.

Only if these things are arranged into systems
and systematic activated it will become possible
to produce something for which customers are
willing to pay a price. Porter argues that the ability
to perform particular activities and to manage the
linkages between these activities is a source of
competitive advantage.
The importance of value chain analysis is that it can
help to assess costs in production /marketing chain that
might be reduced or impacted by a change in one of
the chains processes. By comparing value chain of the
competitors, one can often find the areas or links of the
chain where others might be more efficient than him
that points the direction for improvement.

Structure of Coffee Value Chain in Nepal

Nepal Coffee Producers Association (NCPA) is an
umbrella organization of coffee producers. There
are 14 District Coffee Producers Association (DCPA)
associated with NCPA. The NCPA record shows that
27,730 farmers are cultivating coffee in Nepal, only
a few of them in commercial scale. Majority (90%)
of those coffee farmers are associated with DCPA.
Scattered settlements, inaccessibility of the specific
locations and very small scale (less than 50 plants)
prevented the rest of the farmers to join DCPA.
Apart from growers there are several individual
and organizations involved in coffee value chain,
especially in trading, processing and export. The
Coffee and Tea Development Section (CTDS) under
the Fruit Development Directorate of the Department
of Agriculture, National Tea and Coffee Development
Board (NTCDB), Nepal Coffee Producers Association
(NCPA), Coffee Promotion Program of Helvetas Nepal
have been assisting coffee production and trade in
domestic and export
19

markets. At the district level there are 14 District Coffee Producers Association and more are under process
of registration. Each of those institutions is involved in promotion and/or value addition in coffee sub-sector
through different functions as depicted in Figure 5.
Figure 5: Coffee Stakeholders and their Major Functions

Source: CoPP, 2011

References
CBS, 2006, Statistical Year Book of Nepal, Central
Bureau of Statistics, Thapathali, Kathmandu.
CoPP 2011. Annual Plan 2011. Coffee Promotion
Program, Helvetas, Kathmandu.

20

NTCDB, 2009. Strategic Plan for Moving Forward

Nepals Coffee Sector for 2009 to 2011, National Tea
and Coffee Development Board, Kathmandu.
Kaplinsky, R. and Morris M. 2001. A Handbook for
Value Chain Research, Report prepared for IDRC.

CoPP, 2010. Annual Report 2010. Coffee Promotion

Progra,m Helvetas, Kathmandu.

Kattel, RR, 2009. The impact of coffee production on

Nepali smallholders in the value chain, MSc thesis
submitted to Leibniz University, Hannover, Germany.

Agri-business Promotion & Statistic Division, 2010.

Statistical Information on Nepalese Agriculture
2009/10. APSD, MOAC, Kathamndu.

Porter, ME, 1998. Competitive Advantage: Creating

and Sustaining Superior Performance. Free Press New
York.

3.2 Present state of coffee production in

Nepal: Opportunities and Challenges
Bhola Kumar Shrestha 7

Abstract
Coffee, the second largest commodity next to petroleum traded in the world
market is produced in more than 100 countries. Total production in the world was
128.2 million bags in 2008 ( www.ico.org). Brazil is the world leader in production
and America in consumption. Coffee, entered Nepal from Burma in 1939 has been
extended to about 40 districts in the mid hills of Nepal with significant potential as
export commodity. More than 25000 small growers have been involved in coffee
cultivation in about 1630 ha with 343 tons of green bean production in the year
2010. The export of Nepali coffee is in an increasing trend. Importers consider it
as a specialty product and demand outstrips supplies. Nepali coffee has specialty
quality potential as good as Mexican coffee. Cup testing result showed 82-86
percent specialty quality. Lack of human resources and problems due to diseases
such as white stem borer are the area to improve for coffee sub sector development.

Introduction
Coffee, the second largest commodity next to petroleum traded in the world
market is produced in more than 100 countries. Of
the four main species of coffee, (Arabica, Robusta,
Liberica and Excelsa), only Arabica (Coffee Arabica)
Production by type
and Robusta (Coffee canephor) are in consumption
where Arabica has 62 percent share in world
production. Arabica is the only species grown in
Nepal.
Coffee was brought into Nepal by a Monk in around
1939 after almost 14 centuries of its discovery in
the world in Ethiopia, Africa. Among the various
cash corps cultivated in Nepal, coffee is a high value
cash crop commercially grown in the country with
environmental importance. Though it is extended
to around 40 districts of the mid hill regions of
Nepal, 23 districts are growing it on commercial
basis. Major coffee producing districts are given in
the table below.

Robusta, 38%
Arabica, 62%

Nepals Main Coffee Growing Region

S.N

Dev. Region

Districts

Eastern

Ilam, Udayapur, Sankhuwasabha, Okhaldhunga

Central

Lalitpur,Sindhupalchowk, Kavrepalanchowk,Dhading,makawanpur,
Nuwakot, Rasuwa, Ramechhap

Western

Arghakhanchi, Gulmi, Palpa, Shyangja, Kaski, Baglung, Parbat, Myagdi,

Tanahun, Lamjung, Gorkha

Among them the top seven district in production of dry parchment on the basis
of 2009/10 harvest are presented in the table below. The table below shows that
7

Technical Officer, National Tea and Coffee Development Board, New Baneswar, Kathmandu,Nepal, ntcdb@hons.com.np

21

Sangjya is the leading district in case of production,

and area but Kaski leads in regards of number of
coffee growers. Lalitpur has fairly big coffee farmers
with an average production of 56.2 Kg green bean
per grower. Palpa, Gulmi were the district to initiate
coffee production but still lack behind in production.

Nearly all coffee is grown by small holders. The

number of growers in 2006 was 12000 which has
increased to 25000 growers as of 2010. The area of
coffee plantation is in increasing trend

Production (Unit)

Parchment Production (ton)

Fiscal Year

Top 7 Districts
Year

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

Parcgnebt
(mt)

108

114

156

270

265

334

429

Coffee Plantation

Area in Hac

Which in 2006 was 1285 ha has reached 1630 hectares

in 2010 which indicates an annual rate of increase
is about 15 percent. Similarly the production of dry
parchment was 256 ton in 2006 which has increased
to 429 ton of dry parchment ( 343 ton Green bean)
in 2009/10. There is about 25 percent annual rate of
increase in production.

Fiscal Year

Coffee Farmers

Year

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

Plantation(Ha)

925

1078

1205

13596

14850

1531

1630

30000
25000

Districts
Shayangja
Lalitpur

22

Farmers

Area
(Ha)

Green Bean (GB)

Production (Kg)

GB Prod./
Farmer (Kg)

3186

230

47229

14.8

785

99

44119

56.2

Gulmi

2498

112

44001

17.6

Kavre

2565

112

33958

13.2

Nuwakot

1023

77

27750

27.2

Kaski

3392

85

24099

7.1

Palpa

2476

183

19920

8.0

Farmers Number

20000
15000
10000
5000
0

Fiscal Year
Year
No of Farmers

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

7000

10000

12000

15000

18000

21000

25000

Market for Nepali coffee has increased both in

domestic and international level. Coffee green
bean exported in 2005/06 was 1525 Bag (60Kg/ Bag)
which in 2009/10 increased to 1867 Bags.
Coffee Export (Bag)

Opportunities

25000

There is a great potentiality for specialty coffee

cultivation in the mid hills of Nepal due to suitable
climate, topography, soil structure, relative humidity;
temperature and rainfall, The ecological settings
in the Himalayan hills provide Nepalese coffee an
exceptional opportunity to enter international
specialty markets.

Export (Bag)

20000

15000

10000

5000

Fiscal Year
Year
Export

Netherlands, Canada, Belgium are the major countries

where coffee is being exported. At this point, Korea
is the leading buyer, followed by Japan. Around 60
percent of the production is exported. Sales in the
domestic market are also increasing and the present
sale is about 40 % of the total production. There are
six companies including cooperatives exporting
coffee to different destinations.

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

405

595

1525

1867

2117

1867

2000

Nepali coffee has been exported to more than 15

countries. Export destinations have been increasing
every year. Japan, Korea, the USA, Germany, the

The Specialty coffee is categorized as organic, High

Altitude Grown, One variety, Estate Coffee and
De-caffeinated. Nepali coffee consists of all the
characters (Organic practice, only Arabica). Some
specialty coffee known in the world is listed below:
^^ Jamaican Blue mountain
^^ Tanjanian Pea Berry
^^ Hawain Kona Coffee
^^ Ethiopian Yarga Chaphe

Table below shows an overview of the major export destinations with tentative volume
by the company.

Country

RECM

NOCP

HCPCL

Germany
Belgium
Japan

13000
12340

Buddha
Organic

16000

1500

12000
500

Switzerland

6000

1375

Canada

3200
310

32000

600

28000

17000

4000

Dubai

500

Jordan

500

Netherlands

500

Portrico

500

UK

700

Internal
Total

Coffee Coop.
Lalitpur

500

Australia

Taiwan

Gulmi Coop

1145

Italy

Korea

Planteck

30795

6600

6000

17000

6600

38000

38875

40000

16000

11500

23

Nepali coffee is considered specialty coffee grown in

higher altitude away from the main coffee growing
Capricorn and cancer belts (above 23degree
latitude) of the world. One of the international
buyers disclosed that he is paying almost 50 percent
premium price just for origin for Nepali coffee. Nepali
coffee stands at 40 -50 percent of specialty coffee
standard which can be upgraded to a level of about
80 percent. The team also tested the Nepali coffee
and was found Specialty Quality potential as good
as Mexican (NTCGDA, 2005). This has been proved
with many test results that showed 82-86 percent
specialty quality in cup testing.
Moreover the coffee cultivation practices currently
used is 70 80 percent organic (NTCGDA, 2005).
There are strong organized groups of producers at
village, districts and national level with more than
25000 coffee growers. The coffee enterprise has also
been initiated at different levels with strong network
between producers and traders. In addition there
are many stakeholders (I/NGOs, NTCDB, CTD etc)
supporting in the promotion of coffee production,
processing and marketing. Certification Body at
local level has already been providing their services
on organic certification of coffee for international
market. NTCDB has developed 3 years Coffee
Development Strategic Plan in collaboration with
all stakeholders. NTCDB has also developed and
distributed Nepal Coffee LOGO for quality assurance
of coffee.

The government policy is also positive towards

organic production practices for which the National
Guideline for organic agriculture production and
processing 2064 (Amendment 2065) has been
approved. The government has also allocated budget
for organic certification and organic fertilizers.
Coffee involves many steps to bring in to final cup
stage (Seed to Cup), thus, creates employment. It
also helps in the promotion of agro-ecotourism,
import substitution and GDP contribution through
export.

Challenges
There are many challenges in commercialization of
coffee. Some of them are list below: The demand
exceeds the supply: the major coffee traders in the
country reported that there is increased demand
of Nepali coffee in the international market but
the production volume is very small. It is grown as
a subsidiary crop in the marginal land sometimes
as curiosity plant The table below shows that 81
percent of the growers has less than 100 plants and
produce about 400 Kg of fresh cherry or less than 80
Kg of Green Beans and only one percent grower have
more than 500 plants. Thus, increased production to
meet the demand needs a strong strategy to expand
coffee in all possible plantation sites including
community forest.

Opportunities for the Development of Nepals Coffee Sub-Sector

Potential in International markets: 1500 tons

Growing demand for Nepal Coffee
Potential in domestic markets: 500 tons
Organic and Fair Trade

GDP contribution
Niche Markets
Increasing food securing
livelihoods of small-holders

Speciality markets
Defined areas of origin branding

Opportunities
Employment opportunities

Agro-eco tourism

Favourable conditions
for expanding organic
coffee production

Existing government policies on

organic agriculture
Agro-ecological conditions
favourable for organic production
Producers in favour of going organic

Import substitution (Current value

of imports 50 millions NRs or
around 0.75 million USD)
24

Size of coffee <50

Plant

51-100

1 0 1 - >500
500

% of HHs

42

17

39

Big Farmers in Lalitpur 12 percent; Gulmi, Palpa, Sangjya,

Kaski and Kavre 1 percent

Maintenance of quality: Nepalese coffee, though

consists of specialty quality, has faced problem to
maintain its inherent quality due to poor processing
facilities. Pulping, fermentation and drying facilities
at farmers field level would greatly help maintain
the quality. Many countries have shifted from
conventional coffee to organic production practices
with huge government support. Though Nepal has
initiated organic support program, it is very small to
compete in the international market.

Delay in payment: Farmers were reluctant to increase

the plantation as they need to wait more than six
month to get the payment for the coffee cherry.
Creation of Coffee development fund could be
helpful to encourage small farmers to increase the
plantation.

Limited technical manpower: There is shortage of

technical manpower to support coffee. Technical
knowledge required for production, harvesting,
value addition etc is limited which has hampered the
entire coffee sector.

Lack of required coordination: There are many

organizations working for coffee with little or paper
coordination which need to establish a functional
coordination to bring a synergy in coffee sub sector
development.

Limited research and development activities: There

are very limited research initiatives on coffee variety,
fertility and many others for which NARC and other
related organisations role has to be increased.

Diseases: Coffee White Stem Borer has become a

serious threat to increase the production as many
coffee plantations have been wiped out due to its
attack.

25

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26

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3.4 Comments on Export Potentials and

Constraints of Nepalese Coffee
Kamal Raj Gautam9

First off all I will like to thank PACT team for providing me the opportunity to
participate in this valuable coffee sub-sector workshop for Nepal. I hope while
participating in this event will enhance my knowledge in this sub sector. Here I
have tried to analyze the paper in the context of value chain as an actor-oriented
approach and is highly effective in tracing product flows, showing the valueadding stages, identifying key actors in the chain and assessing the relationships
among them.
The paper presented by the writer even though the title is not the same as provided
for him, but during his presentation he has justified why he has refined the title on
which Im convinced. Considering this basic constraint the specific findings and
comments are:
Mr. Nepal has clearly mentioned the role of Coffee in the world market and in
Nepalese context due to exposure of Nepalese people with out-side world; its
internal consumption is also in increasing trend. By stating this point he is trying to
indicate the increment in the internal demand as well as international market. In
the same way he has tried to identify the factors playing role for the attraction of
pesticide free coffee i.e. organic coffee demand.
Here, I think he has presented the strength of Nepalese coffee product which is one
of the major aspects of the coffee sub-sector. In the same way he has presented
the environmental and health issues crucial for increasing the demand of coffee in
internal and external markets. By analyzing these aspects author has tried to show
the opportunities for Nepalese coffee. In this context if he had added the different
stakeholder i.e. Local/Sub-national/National supporting institutions that play key
role for its production and promotion including the coffee farmers and nurseries
then it would have added value to his paper.
In the aspect of trader, there is an encouraging level of traders interest and
participation despite limited effort to promote export. If he had analyzed the
weakness of Nepalese coffee industry, it might have provided crucial points to
support trade facilitation for the end markets. Whereas in this regard he has tried
to mention quantity, production quality, primary-secondary processing- well
managed promotion activities in world market, Trade guaranteed qualitative and
quantitative supply as of importing countries demand, End Markets as sub-sector
analysis.
Thus, I think paper presenter has tried to analyses the coffee sub-sector as aimed
by the project for its promotion.
Lastly I would like to thank paper writer for his effort to present such an informative
and synthesized paper.

Programme Director, Agribusiness Promotion and Market Development Directorate, Department of Agriculture, Harihar Bhawan,
Lalitpur, Nepal, krgkrishi@yahoo.com

27

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g]kfnsf] ;d'Gb| ;txaf6 *))!^)) dL6/df /x]sf] dWo kxf8L e"lddf j;f]jf; ug]{ kxf8L
If]qsf ;fgf tyf Joj;foLs skmL s[ifsx?nfO{ ;+:yfut ;+/rgfsf] dfWodaf6 k|fl/s Pj+
ljlzi7 >]0fLsf] skmLsf] Joj;foLs pTkfbg / lbuf] jhf/Ls/0fsf] Joj:yf ldnfO{ pQm If]qdf
nfUg] Joj;foLx?sf] cfl{ys pGgtL ug];
{ fy} /fli6o cfo>f]tdf a[l4 ug],{ ul/jL lgjf/0fdf
;xof]u k'/o\ fpg], g]kfnsf] k|dv
' lgof{t of]Uo gub] afnLsf ?kdf :yfkLt ug],{ e"Ifo /f]sL
df};d kl/jt{g cfhsf] ljZj ;fd' b]lvPsf] r'gf}tLnfO{ Go"gLs/0f ug]{ kof{j/0fLo ;'wf/ ug]{
kl/sNkgfsf ;fy g]kfn skmL Joj;foL dxf;+3 cuf8L a9]sf] 5 .

$ nIo
o; ;+:yfsf] d'Vo nIo skmL s[ifsx?sf] xs, lxt ;'/lIft ub}{ g]kfnL skmLsf] u'0f:t/
;'wf/ u/L jhf/sf] dfu cg';f/ pTkfbg ug]{ lgltut Joj:yf u/L Joj;foLs/0f ub}{ lbuf]
/ ;+:yfut u/fpg k'jw{ f/ ljsf;, ;+:yfut ljsf;, h}ljs (organic) k|ljlwsf] ljsf; Pj+
k|j4{g ug],{ /x]sf] 5 . o;sf nfuL pTkfbg j[l4 / jhf/ k|j4{g ug{ ls;fg ;d'xx? k|f/lDes
10

28

cWoIf, g]kfn skmL Joj;foL dxf;+3

;xsf/L DCPA/ pBdL / g]kfn ;/sf/ / ;DjlGwt

lgsfo;+u lgltut jsfnt tyf ;xsfo{df hf]8 lbg]
/x]sf] 5 . NGO/INGO / cGo ;:yfx?;+u ;DfGjo
u/L skmL If]qdf ug]{ ;xof]unfO{ Ps ?ktfdf nUg] nIo
/fv]sf] 5 .

% d'Vo pb]Zo
;+:yfut ljsf;, k|ljlw ljsf;, lglt tyf ;+jGw ljsf;,
jhf/;xhLs/0fsf lglDt g]kfn ;/sf/, bflqlgsfox?
gLlhIf]q, ;fdflhs ;+3 ;+:yf Pj+ pBf]uLx?;u ;dGjo /
;xsfo{ ub}{ hfg] /x]sf] 5 .

^ pknJwL
@)%$ ;fndf dfyL pNn]lvt lhNnfx? dWo]af6 $^ hgf
cu'jf skmL s[ifsnfO{ cd]/LsL skmL lj1 df]/L;Lof];
;flngf; / kfjn sf6\hk] m af6 g]kfndf klxnf] k6s s[lif
If]qsf] slkm v]tLsf] /fd|f] ;+efJotf, k|ffl/s pTkfbgsf] /
fli6o tyf cGt/f{li6o ahf/df /fd|f] cj;/sf] hfgsf/L
x'Fbf s[ifsx? skmL v]tL k|lt cfslif{t eO{ g]kfnsf cGo
lhNnfx?df skmL v]tL Joj;flos a9\b} cfof] . slkm
ls;fgsf] ;+:yfut ;+/rgf h:t} ufpF ufpFdf ;d'x ;d'x
;d'xaf6 lhNnf ;+3 (DCPA) lhNnf ;+3 ;xsf/L pBf]
uLx? ldn]/ s]Gb|df dxf;+3 (NCPA) sf] ;+:yfut ;+/rgf
lgdf{0f u/L Joj:yLt skmL Joj;fodf kl/0ft eof] .
;+:yfut ljsf; k|ljlw ljsf; lglt tyf ;DaGw ljsf; /
ahf/Ls/0fn] Joj:yfklso ljsf;sf] cjwf/0ffaf6 skmL
Joj;fo Joj:yLt x'g uPsf] 5 . ls;fgx?df O{dfGbf/Ltf
/ d]xg]tsf] k|ltkmn, g]kfn ;/sf/sf] ;sf/fTds b[li6, slkm
ljsf; jf]8s
{ f] e"ldsfn] /fli6o skmL lglt @)^! lg:sf;g
eO{ slkm lglt sfof{Gjog lgb]l{ zsf @)^& cg';f/ ut
dfu{ @)^& df /fli6o skmL nf]uf] -k|lts lrGx_ k|fKt eO{
;fj{hlgs ePsf] / g]kfnsf tLg pBf]un] g]kfn slkm
Joj;foL dxf;+3sf] l;kmf/L;df jf]8a{ f6 nf]uf] k|fKt u/]sf
5g\ . eg] cGo pBf]ux? klg qmdzM k|so[ fdf cfO{ ;s]sf
5g\ . skmL ls;fgsf] ;+:yf (NCPA) sf df}hb' f !%@ hgf
skmL k|fljlws -h]=l6=P_ dWo] #@ hgfnfO{ CTEVT f/f L2
-h]=6L=P_ sf] kl/Iffsf] Joj:yf u/fO{ @( hgf bIf k|fljlws
pQL0f u/L NCPA cGtu{t k|fljlws ;ldlt dfkm{t skmL
If]qdf sfo{/t 5g\ . afFsL k|fljlwsnfO{ CTEVT af6 qmdzM
l:sn6]:6sf] Joj:yf u/fO{ bIf k|fljlws agfpb} nUg]

sfo{qmd 5 . x/]s jif{ d+l;/ ! nfO{ g]kfn ;/sf/af6 cfkm\gf]

jflif{s sfo{qmd cg';f/ slkm lbj; 3f]if0ff u/]sf] 5 .
pQm cj;/af6 lbj;n] /fli6o tyf cGt/f{li6o hutsf]
Wofg g]kfnsf] cuf{lgs ljlzi6 skmLsf k|lt cfsif{0f
u/fPsf] 5 . ljBdfg @%))) ls;fgsf cltl/Qm cj w]/}
ls;fg / cGo If]qsf dflg; ;d]t o; If]qdf cfslif{t
ePsf] 5 . g]kfnsf] skmL pTkfbg k|zf]wg ahf/ lgltut
Joj:yf ;xof]uL If]q lj:tf/ k|rf/ k|;f/af6 skmLsf] eljio
pHhn 5 . slx st} skmLsf ?v sfl6Psf] skmL laqmL
gePsf] cfbL s'/f klg cfpg] ub{5 . :jefljs klg xf],
skmL u'0f:t/ gx'g,' ;dodf ls;fgsf] skmL Jofkf/Laf6
gp7\g,' au}rf ;fgf] / Joj:yLt gx'g,' u'0f:t/sf] skmL gx'g,'
/f]u -ujf/f]_ sf] nIf0f b]lvg', ahf/df s]xL cgflws[t ?kdf
skmL cfPsf] 5 eGg' lo dfyLsf ;a} ;d:ofnfO{ skmLdf
sfd ug]{ g]kfn ;/sf/ / ;DalGwt lgsfox?, pBf]uLx?,
ls;fgx?, DCPA/NCPA ;a} ldnL lgltut Joj:yf, cfly{s
Joj:yf u/fO{ If]q lj:tf/, u'0f:t/ ;'wf/, pTkfbg a[l4 ug]{
/ cg'udgsf cfwf/ ;d]tdf ;'wf/ ug{ ;lsG5 . s]xL
;d:of pTkGg x'Fbf of] If]qnfO{ rgfvf] aGg k|l] /t ub{5 .
Table 1: Coffee Production
and Plantation in Different Years
Fiscal Year

Plantation
Area (Ha)

Production
(Mt.) Dry Cherry

2051/052

135.70

12.95

2052/053

220.30

29.20

2053/054

259.00

37.35

2054/055

272.00

55.90

2055/056

277.10

44.50

2056/057

314.30

72.40

2057/058

424.00

88.70

2058/059

596.00

139.20

2059/060

764.00

139.20

2060/061

952.20

217.60

2061/062

1078

250

2062/063

1285

391

2063/064

1295.5

270

2064/065

11450

265

2065/066

1531

334

2066/067

1630

417

;|f]tM

Parchemoant
Prod. (Mt.)

NCPA

29

Table 2: Coffee Plantation Area &

Production 2009/10 (2066/67)
S.N.

District

Total Area Ha

Green Bean
Production (Mt.)

Palpa

183

19.9

Gulmi

112

44.1

Arghakhachi

76

13

Syangja

230

47.2

Kaski

85

24

Parbat

45

9.5

Lamjung

149

14.5

Gorkha

95

Banlunga

39

12

10

Tanahu

52

11

Mayagdi

12

12

Sankhuwashava

18

13

Ilam

42

10

14

Khotang

15

Jhapa

16

Panchthar

12

4.5

17

Udyapur

18

Lalitpur

99

44

19

Sindhupalchok

85

15.8

20

Kavrepalanchok

112

33.9

21

Nuwakot

77

27.7

22

Dhading

30

23

Makawanpur

25

24

Other Districts

25

Total

40

12

1630

343

Table 3: Export and Import of

coffee
Fiscal year

30

Export (Green bean)

Import

Quantity (kg)

Value (Rs)

Quantity (kg)

Value (Rs)

2051/052

14660

1643015

1823200

2052/053

5040

637560

23832000

2053/054

4245

6022569

15316000

2054/055

2000

318000

16264000

2055/056

3160

634000

32741000

2056/057

4254

1415000

36437000

2057/058

3677

672914

43200000

2058/059

9075

2455250

4621057

2059/060

16861

5204526

141968

2060/061

24295

5946890

409972

2061/062

65000

1966000

168841

2062/063

91500

27678000

2265000

2063/064

100180

40117000

56000000

107800000

64481000

2064/065

112000

2065/066

112000

84400000

2066/067

120000

5440000

&

cj;/

;j}eGbf a9L cS;Lhg h]g]/]6 ug]{ lkknsf] ?vnfO{

dflgG5 , Tof] h:t} skmLsf ?vaf6 cS;Lhg h]g]/]6
x'G5 . h:t} ! x]S6/ skmLsf] ju}rfaf6 k|ltlbg *@
kf}08 cS;Lhg h]g]/]6 ub{5 . To;}n] jftfj/0f cg's'n,
u|Lg8n/, hnjfo" kl/jt{g cg's"n e"ldsf, sfj{g Jofkf/
/fi6nfO{ 7"nf] of]ubfg k'/\ofpg] . cGt/fli6o jhf/df
skmL kf/vLx?df ljlzi7 :jfb / k|sf/sf] skmL vfg]
k|rng j9\bf] 5 . hdfO{sfsf] ANo" dfp06]g skmL
sf] :yflkt jhf/nfO{ g]kfnL skmLn] cg';/0f ug{' kg]{
cj:yf oxfsf] ljz]if k|sf/sf] lEfGg xfjfkfgL lxdfn,
e"w/ftnsf cj;/ ;[hgf ePsf] 5 .

;d:of tyf ;dfWffgsf pkfox?

pTkfbg If]qlj:tf/, k|zf]wg, cg'udg
Organic dnljiffbLsf] Joj:yf
ICS (cfGt/Ls lgoGq0f k|0ffnL_ cuf{gLs ;l6{lkms];g
Joj:yf
g;{/L k|df0fLs/0f / /lh:6];gsf] Joj:yf
prfO{ kNkL s]Gb| k|ljlwsf] Joj:yf
:6]l/h, kNkL u'0f:t/ -kNk/ ;+rfns_ lj?jfnfO{
vfBtTJf Joj:yfkg cg'udg
;+sng tyf e08f/0f Joj:yf
;fdfu|L cfk"tL{
ahf/ cg';f/ k|zf]wg k|ljlw
c:j:Yo k|lt:kwf{sf] cg'udglgoGq0f
Sjf/]G6fO{g Joj:yfsf] ;/nLs/0f / cg'udg
Hulling , granding coc nufPtsf] Joj:yf
skmLsf] u'0f:t/ cup-testing rosting ;+jlGw
Joj:yf / cg'udg
lglirt lgsfo -skmL lglt / (NCPA) sf]
cg'dltaf6 dfq Joj;fosf] Joj:yf / cg'udg
skmL nf]uf]sf] Joj:yf / cg'udg
;j} If]qsf] ;dGjo / ;xsfo{ .

3.6 Coffee Research and Development in Nepal

Ram Bahadur KC and Krishna Bahadur Thapa 11

Introduction
Coffee (Coffea spp) is newly introduced crop for Nepal. According to past evidence
Sadhu Hira Giri introduced and propagated some seeds of coffee in Gulmi
Anapchaur in 1938 (1995 BS). It means Gulmi was first avenue district of coffee
plantation in Nepal. It is cash crop that is grown commercially in 23 districts. Most
of the coffee grown area are confined in Western and Central Development Region
mid hills of Nepal.
Botanically, coffee is a perennial shrub which belongs to the genus Coffea of the
family Rubiaceae. There are more than 70 species under the genus Coffea, most of
which are native of Africa (Coffee guide, 2000). However, four species under Coffea
are economically important. These are arabica, liberica, excelsa and canephora
(robusta). The Most popular coffee species grown in Nepal is Coffea Arabica which
accepted as high quality coffee in the world. It is tetraploid species with 2n=44
chromosomes and self fertile in nature (Coffee guide, 2000). Different varieties/
collection of Coffea arabica are collected and cultivated in Nepal so far has beeb n
presented in Table 4.

Potentiality of Coffee in Nepal

Coffee is second largest traded commodity of world after petroleum products.
Climatically and geo-physically the coffee grown at higher altitude (more than 800
m) with cool climate is recognized as specialty coffee in the world. Nepal has special
production niche as it poses 42% of land lies in mid hill situation (Manandhar
and Shakya, 1996). Climate, soil and altitude are the major factor to grow the
production of quality coffee. Furthermore, unemployment is the main constrain
in rural areas. So coffee farming would be the potential alternative way to mitigate
such problem. The demand of organically grown coffee product is increasing day
by day in national and international market. It is reported as environment/bird
friendly plant which helps to reduce soil erosion and fit in three tier plantation
system.

Coffee Development Process at a glance

^^ In the beginning coffee was introduced firstly in 1938 (1995 BS)
^^ In 2042, establishment of Coffee Development Center for work carried out
coffee development and training
^^ Establishment of Nepal Coffee Company in 1983 (2040 BS), at Manigram,
Rupendehi
^^ Coffee growing got accelerated when coffee grower established the Nepal
Coffee Producer Association (NCPA) in 1992 (2048)BS
^^ National Tea and Coffee Development Board was established in 1993 (2050
BS) for coffee promotion in Nepal
^^ Formulation and Implementation of National Coffee Policy was in 2003
(2060 BS)

11

Senior scientist, ARS (Hort.) Malepatan, Pokhara

31

^^ An experiment entitled Development

of Improved and Sustainable Package of
Production Technology for Commercialization
of Coffee Cultivation was started in ARS,
Malepatan during the FY 2060/61.

Table 1: Distribution of coffee

growing areas in Nepal

1st category (>100 ha)

3rd catagori (>25 ha)

District

Area District

Area

Syangja,

221 Parbat

46

Palpa

196 Ilam

45

Lamjung,

159 Baglung

38

Gulmi

118 4th catagori (<25 ha)

Kavre

118 Makawanpur

20

Lalitpur

104 Sankhuwasava

19

Myagdi

11

2nd catagori (>50 ha)

Gorkha

97 Panchthar

Kaski

86 Khotang

Sindhupalchok

86 Udayapur

Arghakhanchi

80 Other districts are

Nuwakot
Tanahu
Total area:
Involve farm family

10

67 Rasuwa,
Okhaldhunga,
54
Dhading,
1650 Ramechhap, Ilam
ha
21400

Coffee Research in Nepal

^^ By the directive of late king Birendra, Coffee
Development Center was established in
2042 at Anapchaur VDC of for the purpose of
research and training on coffee.
^^ Coffee varieties were introduced from
International Coffee Research Center, Brazil
at ARS, Malepatan during the FY 2051/52
by LARC (Now RARS, Lumle). Varieties
were Bourbon Amarillo, Bourbon Vermelo,
Catimore, Catuai Amarillo, Catuai Vermello,
Catura Amarillo, Catura Vermello Mundo
Novo (Chaudhary 2009).
^^ Some seeds of coffee varieties such as Pacas,
Tekisic, Pacamara, Catisic was introduced
from L-Salvadeur and distributed to different
agri-farms by Winrock International in 2054
BS.
^^ In 2061 NARC, DOA, Nepal Tree Crop
Global Development Alliance and Winrock
International planted coffee varieties to study
varietal performance in Panchkhal farm.
^^ Study in relation to coffee entitled
Development of Eco-friendly Management
Practices for Coffee Stem Borer was carried
out by the ARS Malepatan during FY 2064/65
and 2065/66.
Source: NTCDB

32

^^ Similarly in 2062 BS another research project

on coffee entitled Selection of Suitable
Genotypes of Variety grown under different
Organic Means for better quality coffee
production was initiated at ARS, Malepatan
condition in collaboration between NARC
and NTCDB.
Other research activities on progress under ARS
(Hort), Malepatan
^^ Varietal physio-morphological
characterization of coffee
^^ Varietal evaluation in different elevation (800,
1000, 1200, 1400 masl)
^^ Shade management on coffee
^^ Collection, conservation and evaluation of
coffee genotypes
^^ Study on quality brandy preparation from
fresh cherry pulp
^^ Designing of low cost parchment drying
house
^^ Technical backstopping to the clients
^^ Publications

Research Findings so far

1. Performance evaluation of coffee genotypes in Western hills of Nepal
Super imposed experiment was conducted at ARS
Malepatan in eight years old orchard under Siris
(Albizia sp.) shade condition. Experiment was laid
out in RCB design replicated three times. The highest
mean marketable fresh cherry yield (4.32 kg /plant)
produced by genotypes Caturra Amarillo followed by
Bourbon Vermelo (4.18 kg/plant). In case of caffeine
percent genotype Mundo Novo contained higher
caffeine (1.578%) and the lowest in Caturra Amarrillo
(1.324%).

2. Development of improved and sustainable package of production technology for

commercialization of coffee cultivation
In coffee, the combination of double dose of farmyard
manure (@10 t ha-1) and single dose of chemical
fertilizer (NPK @ 100:30:60 kg ha-1, respectively) found
to be most suited to grasp the higher yield of fresh

cherry (988.2 kg ha-1) of coffee as compared to either

single dose of farmyard manure only or chemical
fertilizer only.
The maximum yield of fresh cherry (1228.45 kg ha-1)
was observed in variety Yellow Caturra and followed
by Selection-10 (758.80 kg ha-1).

3. Selection of suitable variety of coffee

grown under different organic means for
better quality and production at
malepatan condition
This project was started in collaboration between
ARS, Malepatan and NTCDB, Regional Office at
Malepatan during Mangsir 2062 BS. The finding of
the is presented in Table 2

5. Varietal physio-morphological
characterization
For physio-morphological and genetically variability
to evaluate varietal similarities and dissimilarities
characterization (both quantitative and qualitative)
was initiated in some varieties/collections at ARS,
Malepatan.

6. Varietal evaluation in different elevations (800, 1000, 1200, 1400 masl)

Different varieties/collections are cultivated by many
farmers in different part of the country. However
suitable cultivar for specific location is not identified
so far. In Nepal several cultivars are available and
Table 3: Different locations of
coffee plantation under ARS,
command area

4. Loss assessment survey and pest status

monitoring in Syangja and Kaski district
White stem borer is very challenging coffee insect
now a days in Nepal. Usually orchard over six to seven
years old, poor shade management and careless
condition are found more conducive to the insects.
Following observations were concluded from the
conduction of the survey in the following sites.
^^ At Bahakot, Syangja (1100-1300m), mostly
3-4 years old orchard were observed free
from white stember borer (WSB).
^^ At Karendada, Syangja (1100m), the plant
lost from the insect was observed to be
25%.
^^ There was about 20 per cent plant loss due
to WSB at Malunga, Syangja (700 m).
^^ In kaski - Deep, Puranchaur, Begnas area no
infestation was observed

Location

Altitude Location
(masl)

ARS ( Hort),
Malepatan

850

Sumrekhola
(Syangja)

900-1100

Armala, kaski

1200

Altitude
(masl)

Lewade, kaski

1200

Dhikurpokhari,
Kaski

1400

Bhadaure Tamangi,
Kaski

1400

Pumdibhumdi,
Kaski

1400

farmers themselves have been cultivating saplings

varieties distributed by the nursery grower in their
locality. Therefore different varieties/collections of
coffee have been planted in different locations of the
western mid hills to identify suitable cultivar of better
quality and production.

^^ Insect traps installed by Nepal-SIMI in Arjun

Chaupari and Malunga Syangja found
ineffective to trap the adult WSB.

Table 2: Fresh cherry yield of coffee (kg ha-1), 2066 (4th year plant age)

Treatment/Variety

Pacamara

Pacas

Tekisic

Chhetra Deep

FYM @ 10 t ha-1

1212.5

1750.5

2060.8

2320.0

1835.95

Pig litter @ 10 t ha-1

1432.5

1468.0

2593.0

2509.5

2000.752

M. oilcake @2.5 t ha-1

1547.3

1547.5

3359.8

2292.5

2186.781

Poultry manure @ 5 t ha-1

1325.0

1541.5

2860.5

1328.8

1763.95L

1379.33L

1576.88

2718.531

2112.72

GM= 1946.80

Mean

Mean

Note: 1= Maximum value, 2=Second higher value, L= Minimum value, GM= grand mean

33

7. Shade Management on Coffee

Coffee is shade loving plant. It requires at least 60%
shade for better quality and production. In Pokhara,
winter temperature during December-January drops
down to 3-4 0C and frost appears occasionally. An
experiment showed that in this situation the survival
rate of coffee planted under non shade condition was
observed to be almost nil. When two or more different
plant species were grown in same land there will be
competition in so many growth factors. Therefore, it
is important to study about the suitable shade tree
for better coffee production at ARS Malepatan under
mid hill domain of western hills of Nepal. Following
shade provider plants trees are planted for the
purpose such as Litchi (Litchi sinensis), Epil-Epil, Siris
(Albizia sp), Macadamianut (Macadamia sps), Pumelo
(Citrus grandis Osbeck), Guava (Psidium guajava).

7. Collection, Conservation and Evaluation

of Coffee Genotypes
As a leading centre of coffee research system under
NARC, ARS, Malepatan collected and maintained
Table 4: Collection of coffee
genotypes in ARS, (Hort.)
Malepatan, Pokhara
S.N.

Varieties/Collection

S.N.

Varieties/Collection

01

Arghakhanchi Local

13

Indo Timtim

02

Bourbon Amarillo,

14

Kaski Local

03

Bourbon Vermelo

15

Mundo Nuvo

04

Catisic

16

Pacas

05

Catimore,

17

Pacamara

06

Catuai Amarillo

18

Puranchaur Local

07

Catuai Vermello

19

Syangja Special

08

Catura Amarillo

20

Selection-10

09

Catura Vermello

21

Sanroman

10

Chhetra Deep

22

Tekisic

11

Hawai Kuna

23

Yellow Caturra

12

Indonesia

following genotypes at the station for further

research and together maintained a field gene
bank. Station requested all concerned stakeholders
involved in coffee promotion in Nepal to provide
coffee genotypes available them to ARS, Malepatan
to conserve as a future assets.

8. Postharvest study on coffee

The coffee cherry as it is harvested cannot be used. It
is necessary to remove the beans from the cherries,

34

clean them and dry them to obtain the marketable

products, green or clean coffee. According to Wrigley
1988, the harvested fruit of Arabica coffee consists
roughly of
39 percent pulp, 17 percent mucilage, 7 percent
parchment husk, 37 percent of green bean
The following activities were carried out at the
Station for postharvest processing of coffee.

Study on quality of coffee brandy prepared

from fresh coffee cherry pulp
Last year (2066), coffee Brandy was prepared from
fresh cherry pulp and its contents analyzed. The
content of pH, alcohol, amyl alcohol (higher alcohol)
total solid, lead, copper, iron, and methanol on
Brandy was tested. Among them methanol content
was <0.01 and lead was 0.77 mg/l. Both need to be
free for human consumption, so this product was
not recommended for human use. It was doubt
on contamination from materials used during
preparation. In this year the coffee Brandy was
prepared with high precaution and will be analyzed
for confirmation to human use. Similarly a local type
plastic solar dryer was designed and developed by
the Station. It helps to dry the parchment in faster
rate than the normal sun drying in winter and may
help in maintaining the quality of the product.

Publications
ARS (Hort.) is publishing research findings regularly
on coffee to share ideas and views among the
concerned stakeholders.
^^ Annual Technical Report 2007/08
^^ Annual Technical Report 2008/09
^^ Annual Technical Reports 2009/10
^^ Selection of suitable variety of coffee
grown under different organic means for
better quality and production at Malpatan
condition. Annual progress report (I, II, III,
IV) from FY 2006/07 to 2009/010. Jointly
published by ARS (Hort.) and NTCDB.
^^

Research Attempt coffee farming. 2067.

Published by NARC/ARS (Horticulture),
Malepatan, Pokhara (Nepali version).

References:
Chaudhary J.N., Y. R. Bhusal, C. Adhikari andR.P. Yadav. 2009. Performance evaluation of
coffee genotypes in western hills of Nepal. Proceedings of the "Fifth National Seminar
on Horticulture held on 9th 10th June, 2008 at Kathmandu, jointly published by
NAST, NARC and NHS.
Coffee Guide. 2000. Central Coffee Research Institute, Coffee Research Station,
Chikmaglur, Karnataka, India.
Manandhar D. N. and Deep M. Shakya. 1996. Climate and Crops of Nepal. NARC. Swiss
Agency for Development and Cooperation , Nepal.
Thapa, K.B. ; R.B KC, Y. R. Bhusal, and Pathak, H.P 2009. Effect of different organic and
inorganic fertilizer combinations on plant growth of coffee. Proceedings of the "Fifth
National Seminar on Horticulture held on 9th 10th June, 2008 at Kathmandu, jointly
published by NAST, NARC and NHS.
Thapa, K.B., R.B KC, R. Chaudhary, Y.R. Bhusal, and D.D. Paudel 2010, Selection of
suitable variety of coffee grown under different organic means for better quality and
production at Malepatan condition. Annual progress report (IV), FY 2009/010, jointly
published by ARS (Hort.), NARC and NTCDB, Regional Office, Malepatan, Pokhara.
Thapa, K.B., RB KC, and D.D. Paudel. 2067. Attempt on Coffee Research. NARC/ARS
(Horticulture), Malepatan, Pokhara.
Thapa, K.B., RB KC, and D.D. Paudel 2067. Researc attempts on coffee farming NARC/
ARS (Horticulture), Malepatan, Pokhara.
Wrigley G. 1988. Coffee. John Wiley and Sons Inc. New York, USA.

35

3.7 Comment on Coffee Research and Development

in Nepal
Surendra P Rijal 12

This paper on coffee research and development covers many aspects of coffee
research and development history of coffee, involvement of farm families, area,
production, processing, varietals trials in different elevations, publications on
coffee. We have to appreciate the efforts made by Malepatan based research on
coffee and the other line agencies including private sectors. With limited budget
and infrastructures like laboratory facilities, this much output is appreciable.

Manpower generation
As coffee is a new technology for Nepal, the key persons involved in coffee research
and development still lack basic exposure on coffee research made so far by the
developed countries. Such exposure can guide key people in the right way while
formulating the research and development program on coffee. No one from the
research center nor from Coffee & Tea Development Section have any Indian or
foreign exposure on coffee

Nutrient Management
Our coffee is organic coffee and therefore we should be able to recommend organic
ways to supply fertilizers for coffee. In Indian conditions, 6000 kg fresh cherry give
1000 kg green bean which is extracted In India. It was found that for every 6,000 kg
of ripe coffee cherry (1 MT of green bean) removed from the plants, approximately
40 kg nitrogen (N), 2.2 kg phosphorus (P) and 53 kg potassium (K) must be replaced
yearly. (www.fao.org/docrep/008/ae938e/ae938e00.htm). The byproduct like
coffee pulp can be good source of organic fertilizer. We cannot rely on Indian or
other organic fertilizer without authorized tests. To ensure good coffee production,
reliable supply of organic fertilizer must be ensured. Our research must take this
point into consideration. Strong integration of livestock with coffee is essential to
ensure organic fertilizer for coffee plant.

Shade management
Coffee is shade loving plant; there are many shades that are in practice in Nepal
and other countries. The shade should be friendly to coffee and income generating.
There are two types of shade a) Temporary b) Permanent. Our research has to
emphasis on finding which particular shade for any specific elevation and posture
will be economically good. We can review Indian and Myanmar practices and
replicate them in our conditions.

Variety Selection
World's most costly coffee is from blue mountain of Jamaica. There is a coffee
variety named Blue Mountain. We have to keep in mind on such things while
selecting coffee variety. In coffee, cup quality is more important than quantity. In
yellow catura of coffee, two picking is sufficient to harvest coffee, tekasic may need
four pickings. We have to judge them from labor cost point of view. Performance of
the variety may not be always true for all areas; the pacamara (most popular variety
of Alsalvador) is poor for soil condition of Pokhara.

S CT D O, CTDS.

12

36

Quality Improvement
Single variety, single estate grown, organically
grown, decaffeinated coffee, high elevation coffee
fetch better price in the international market. Our
research and development must take these points
into consideration. Myanmar is entertaining such
standards for quality improvement on coffee. Our
research and development should take these points
into consideration. How far we can practice them?
How far our manpower and laboratory facility
permit them to practice? These points are in floor for
discussions.

A. Minimum standards for exportable coffee

1. Exporting Members shall not export coffee that:
(a) for Arabica, has in excess of 86 defects per 300
g sample (New York green coffee classification/
Brazilian method, or equivalent); and, for Robusta,
has in excess of 150 defects per 300 g (Vietnam,
Indonesia, or equivalent);
(b) for both Arabica and Robusta, has a moisture
content below 8 percent or in excess of 12.5 percent,
measured using the ISO 6673 method.
2. Where moisture percentages below 12.5 percent
are currently being achieved, members shall
endeavor to ensure that these are maintained or
decreased.
3. Exceptions to the 12.5 percent maximum moisture
content shall be permitted for specialty coffees that
traditionally have high moisture content, e.g. Indian
Monsoonal coffees. Such coffees shall be clearly
identified by a specific grade nomenclature.

B. Certificates of Origin
4. Exporting members shall only issue ICO Certificates
of Origin for consignments of coffee
that meet both the minimum defect and moisture
standards.

C. Cooperation by importing Members in

verifying compliance
5. Importing members shall make their best
endeavors to support the objectives of the Program.

D. Measures to be taken in cases of noncompliance

6. If coffee failing to comply with the above standards

is identified through the normal course of trade,
importing members shall endeavor to notify the
ICO of such shipments. As an example of what is
meant by 'equivalent', 20 broken beans shall be
considered as equal to 1 defect rather than 5 broken
beans per defect in the case of coffees containing
large numbers of broken beans arising naturally, as
a feature of a particular cultivar. Such coffees shall be
clearly identified by a specific grade nomenclature.

E. Measures for controlling the application

of the standards in exporting Member countries
7. Each exporting Member shall develop and
implement national measures which ensure that
no exports of green coffee fail to meet exportable
standards.
8. Exporting Members shall also endeavor to ensure
that sub-standard green coffee is not included in
the manufacture of processed coffee (roasted and
soluble) that is exported.

F Other measures
Alternative uses
9. Members shall seek immediately to identify
sources of external finance from appropriate
institutions for studies and measures that support
the implementation of the program and, in particular,
efforts to identify and put into practice cost-effective
alternative uses for coffee of non- exportable quality.

Labeling
10. All coffee supplied for export shall be labeled to
indicate that it is coffee as defined in Articles 2 and 36
of the International Coffee Agreement 2001. Coffee
by-products shall be labeled as such.

Reporting
11. Members shall report to the Council on the
measures they have taken to implement this
Resolution and inform the Council of any difficulties
in this connection. If such be the case the Council, if
so requested by a Member, may agree to give that
Member time to resolve such difficulties.

37

3.8 Activities and achievements of COPP and

its present activities in support of the
commercialization of coffee sub-sector
Prachanda Man Shrestha13 , Badri Prasad Bastakoti14

Background
This paper presents a short overview of the efforts made by Coffee promotion
Program (CoPP) Helvetas Nepal for the commercialization of coffee sub sector
in Nepal. Also, the paper highlights the key achievements, opportunities and
problems faced by this sub sector.
Among various potential cash crops for commercialization by small holder farmers in
the mountains, coffee has proven to have a great potential to provide farmers a good
on-farm employment and income generation opportunities, and is well adapted
to the climatic conditions especially in the mid-hills at the altitude range of 800 m
to 1600 m for production of superior quality highland specialty coffee. The ease of
production of coffee and low input requirements means that even marginal lands are
suitable for the cultivation of coffee and even small holder farmers can grow coffee
in their existing farming systems with additional benefit of soil conservation and
positive environmental impact.
Despite these benefits, coffee has so far received little attention from Government
and other development agencies. There is no clear policy support for the
production, processing and marketing of coffee in the country. However, there
have been fragmented efforts to support the coffee sub-sector by motivating
farmers to grow coffee for domestic as well as international market. The major
bottleneck in the promotion of coffee in Nepal is the lack of resources to continue
the coffee promotion programme in the expanded area and continue the initiatives
of Helvetas Nepal to strengthen the producers' association to produce and market
the coffee certified as organic and fair-trade and to establish the coffee sub-sector
approach through the coordination. There is also need to support the government
develop human resources and improve collaboration and coordination among
coffee stakeholders including traders.
According to National Tea and Coffee Development Board (NTCDB) there are 32
districts producing coffee where production data is available. Fourteen districts
have established District Coffee Producer Association (DCPA) to support coffee
producer groups in the areas of technology dissemination and organizational
capacity building. Five Coffee Cooperative Unions (CCU) have been established
in Lalitpur, Syangja, Gorkha, Lamjung and Tanahu. CCUs are the federations of
primary coffee cooperatives (PCC) at the village level with the defined role of
collecting coffee from the farmers and processing it to produce dry parchment.
Similarly, CCUs role is to collect dry parchment from the PCCs and depending on
the capacity, either process it to make green bean for marketing or supply dry
parchment to the traders.
It is anticipated that Project for Agriculture Commercialization & Trade (PACT) will
have significant role in developing the coffee sub-sector since the project has
included coffee as one of the major commodities for intervention.
Role of Helvetas in Coffee Sub-Sector Development
Realizing the need of systematic support on coffee production, processing,
marketing and organizational capacity building of the producer groups and
their associations to develop sustainable coffee value chain for the benefit of
13
14

38

Team Leader, Coffee Promotion Programme, Helvetas Nepal

Senior Programme Officer, Coffee Promotion Programme, Helvetas Nepal

the small holder farmers, Helvetas Nepal has been

implementing Coffee Promotion Programme since
2003.
The programme established a system of group
approach for coffee production and processing at the
village level and disseminated organic production
and processing technology for the production of
high quality coffee.
The Government, and more specifically the Ministry
of Agriculture Development (MoAC) and the Tea
and Coffee Development Board (NTCDB) have
recognized the potential role of coffee for improving
the livelihood of many smallholder farmers and for
developing a new cash crop that can fetch foreign
currency significantly. Over the past years the
Government has cooperated closely with Helvetas
in the development of the coffee sub-sector. With
the support from Helvetas the Board established
the Coffee Sub-Sector Working Group bringing
together the key stakeholders such as the Ministry of
Agriculture Development, the National Agricultural
Research Council, representatives of the group of
coffee traders, representatives of producers. In 2008
the Working Group developed strategies for the
development of the coffee sector.
The Coffee Promotion Programme (CoPP) has been
able to disseminate organic coffee production and
processing technology to the small holder farmers to
capacitate them for conversion to organic production
and processing. The producers' associations at
the district and central level are strengthened and
formation of cooperatives are on going task with the
Associations' own initiative for marketing of coffee to
benefit the producer members.

Major achievements
Establishment of a Coffee Sub-Sector Working Group
^^ Development of a strategic plan for the subsector by the Working Group
^^ Total production of coffee green beans in
nine CoPP districts increased from 191 mt
in 2009 to 247 mt in 2010. Where as, coffee
production within the coffee producer
groups increased from 156 mt in 2009 to 218
mt in 2010.

Coffee in CoPP Target

Districts then and now
Indicators

Year 2003

Year 2010

Number of Coffee Producer

Groups

221

624

Number of CPG Member

Households

6291

13216

Area Under Coffee (hectare)

326

595

Area Under Coffee Within CPGs

(hectare)

NA

556

Coffee Production (metric ton)

38

247

Coffee Production Within CPG

NA

218

Total Coffee Sales in Domestic

Market (metric ton)

16

88

Total Coffee Sales in International Market (mt)

21

145

Productivity (kg/ha green

beans)

488

658

Number of Primary Coffee

Cooperatives

None

36

Number of District Level Coffee

Cooperative Unions

None

Number of Cooperative
Members

None

1741

packaging. Established linkage with fair-trade

buyers. First shipment by coffee producers
cooperative sent in 2010
^^ Number of Primary Coffee Cooperatives
registered increased from 21 to 36 and
members with 1000 to 1741 in 2009 and 2010
respectively.
^^ Drafted operating manual for organic
operator on organic production and
certification of coffee grown by smallholder
farmer groups in Nepal
^^ Traceability system for organic coffee
handling developed and piloted

Opportunities for Coffee in Nepal

High quality coffee can be produced in Nepal
^^ Generates significant income for farm
household (upland)

^^ Percentage of wet processed coffee increased

from 90% in 2008/09 to 93% in 2009/10, thus
increasing the quality of coffee.

^^ Organic production methods compatible

with existing farming practices (No yield
reduction in conversion)

^^ Farmers cooperative of Lalitpur established

central processing unit with facilities of
hulling, grading, roasting, grinding and

^^ Easy integration of coffee into existing

farming systems
^^ Coffee producers are organized at village,

39

district and central level

^^ Existing trade relationships with international
buyers, long term trading relationships with
Fair Trade buyers in Europe / Korea
^^ Several certifying agencies active in Nepal:
NASAA, One Cert, Cert All, Ecocert..
^^ Many stakeholders in organic coffee
promotion:
^^ Producer groups/associations; Processor/
traders; INGOs/NGOs, GOs, World Bank
^^ National Organic Standard developed and
approved by GoN
^^ Government fund available for external
inspection and organic certificate
^^ Nepal coffee logo approved and awarded to
three processor/traders

Major problems in coffee sub-sector

At producer level:
^^ Initially coffee introduced as a crop suitable
for marginal uplands for soil conservation;
^^ Effective and sustainable support for
smallholders still weak:
^^ Expand coffee production;
^^ Produce the quality and quantity of coffee
which the market demands
^^ No incentive to farmers for production of
organic and better quality coffee (price
difference)
^^ Late payments to producers by traders
^^ Producer groups do not have expertise
to establish and manage internal control
systems ICS) for organic certification of
production
^^ Government support on organic certification
not targeted to small farmers (Subsidy
for organic certification provided only for
external inspection not for ICS);
^^ Groups lack the capacity to link and deal with
markets which are beyond their local level

40

At processor/trader level:
^^ Quality management and monitoring
systems are very weak.
^^ Communication between traders and
producers weak.
^^ Lack of institutionalized collection and supply
system
^^ Quality management and monitoring
systems do not exist/Nepal coffee logo

At sub-sector level:
^^ Lack of coordination and collaboration
among stakeholders
^^ Systems still lacking to actively manage the
reputation of Nepali coffee in international
speciality markets
^^ Facilitation and support for close
collaboration between smallholder farmers,
processors, traders and regulators still weak.
Mandates and lead functions need to be
developed
^^ Weak research in development of organic
coffee production and processing
technologies. In addition, there lacks
structures which can facilitate to ensure
quality systems e.g. cup testing laboratory,
standard regulation and trade promotion
^^ Lack of organic regulation: all coffee
produced in Nepal sold as organic in the
domestic market

Suggestions
^^ Impact of PACT could be significant when
PACT interventions use the base already
developed by CoPP
^^ Develop and establish systems to ensure the
reputation of Nepali coffee in international
speciality markets (Nepal coffee logo).
^^ Allocate fund for research and development
of organic coffee production and processing
technologies
^^ Establish cup testing facilities at coffee
cooperative union level

^^ Equipment support (hulling and roasting)

from PACT if provided, should go with long
term vision after analyzing the present
situation.
^^ Provide support on area expansion to
commercialize coffee production.
^^ Provide support to set up ICS and
certification of producer groups.

^^ Provide support to improve pulping and

storage facilities.
^^ Need more bilateral interactions between
PACT consultants and CoPP personnel
^^ If PACT supports new districts outside
present coffee producing districts, support
should continue for at least five years.

Supply chain structure for institutionalized

collection and supply of coffee

41

4. MAJOR ISSUES AND QUERIES RAISED

DURING FLOOR DISCUSSION
Ms. Jiwan Prabha Lama, DFTQC
1. There should be a study to find out shelf life of green beans
2. Coffee quality standards are prepared, but need to be harmonized
3. Need to follow Good Agricultural Practices (GAP)
Mr. Badri Prasad Bastakoti, CoPP, Helvetas
1. Major problems in coffee production and marketing are lack of working
capital. No need of subsidy if working capital is supplied easily from
financing institutions.
Mr. Binayak Kumar Misra
1. Allow coffee cultivation in community forests
2. Need to work on value addition
3. PACT should work in the districts that are not included by other I/NGO or
projects
4. Financing institutions should supply loan to coffee farmers at reasonable
rate
5. Trade mark is provided to NCPA. It is OK for the time being
6. Every effort on coffee need to carry with harmonization with NTCDP
7. Coffee development Fund should be established
Mr. Gopi Prasad Dhungana, NCPA
1. Need to maintain revolving fund
2. There are many institutions involved such as HELVETAS, NTCDP, NCP, NARC,
DOA and others without proper coordination.
Mr. Hem Raj Regmi, MOAC
1. Make a high level team to prepare long term vision in this sector
Mr. Haribabu Tiwari, MOAC
1. Need to analyze value addition and comparative advantage of coffee Vs
other crops before promoting it
2. In many instances coffee can be grown in marginal lands and provide
employments: good alternate to those going abroad for employment
3. Irrigation should be arranged through rain harvesting
4. Coffee cultivation should be consolidated in bigger blocks rather than
scattered in different places.
Dr. Bhabeswor Pangeni, Highland Coffe
1. Government should arrange proper coordination
2. Some companies eg. Highland Coffee have started cultivation on leased
land which should be promoted

42

3. Altitude should be considered in coffee cultivation, plant die after a few

years if cultivated in low altitude
4. Payment issue (delayed payment to farmers by traders) is a issue of past,
now there is no such issue
5. Coffee starts production from 6th year, full payback in 15 years and continues
economic production up to 50 years
6. Research should come up with the best varieties of coffee for different
altitude and micro-climates
7. Disseminate technology of cultivating multiple cropping (multi storey
farming) with coffee : shading trees, coffee, under crops
Mr. Durga Prashad Uprety, Agricultural Product Export Promotion Center
1. Government has already allocated fund for certification which can be partly
used for Internal Control System (ICS) of coffee production
Mr. Shyam Bhandari, Nepal Coffee Producers Association
1. No real effort has been made to commercialize coffee production: most of
the past efforts were concentrated on employment and income generation
of Dalit, Janjati and deprived communities
2. Single institute should be coordinating the coffee production/trade related
activities
Mr. Purna Chhetri, World Bank
1. Ethiopia is the country that competes directly with Nepal: need to study
their modality
2. Special attention required in market promotion
3. Politics should not destroy the quality of coffee
Ms. Gayatri Acharya, World Bank
1. Observe what other countries with similar condition are doing?
2. Raise the number of opportunities to every stakeholders
3. United coordinated effort are required
4. Continue this type of interaction among the stakeholders
Mr. Nathu P. Chaudhari, Secretary, MOAC
1. Lack sufficient area coverage and production technologies
2. Lack of quality assurance is the major problem
3. Note that only 2% of the marketed product is organic certified in the world
4. More certifying agencies are required to cover all products
5. Dont always promote large farmers: small farmers can be organized for
larger quantity production
6. Government will continue all the effort made by I/NGOs and PACT after they
cease to continue
7. Coordination/collaboration required among GON, private sector, public
sector and NGOs.
8. Promote bio-technology, bio-pesticide and appropriate technology

43

5. ANNEXES
Annex 1: Schedule of Coffee Sub-Sector Workshop
Date : 11 April 2011 (2067/12/28, Monday)
Venue : GANGZONG Hotel, Lazimpat, Kathmandu
Time : 9:00 - 14:00
Chair Person: Mr Nathu Prasad Chaudhary, Secretary, MOAC

44

Time

Activities

9:00

Chairing of the Workshop: Mr. N.P. Chaudhary, Secretary, MOAC

9:15 - 9:25

Welcome and Importance of Value Chain in Coffee Sub-Sector Analysis, Mr Yogendra Kumar Karki, Project Director, Project for Agricultural commercialization and
Trade (PACT)

9:25 9:35

Opportunities and Challenges of Coffee Production and Marketing in PACT

Districts, DCPA Lalitpur, Syangja, Kaski and Kavre. Ms. Maya Tiwari, District Coffee
Producers Association (DCPA), Syangja

9:35 10:05

Activities and achievements of Coffee Promotion Project and its present activities
in support of the commercialization of coffee sub-sector, Mr. Prachand Man Shrestha, Coffee Promotion Program (COPP), Helvetas Nepal
Comments by: Mr. Dhakeswor Ghimire, Nepal Organic Coffee Product..

10:05 10:45

Actors and stakeholders involved in coffee sub-sector and their roles in commercial production of coffee, Mr Shyam Bhandari, Nepal Coffee Producers Association
(NPCA)
Comments by: Mr Binaya Mishra, Coffee Sub-sector Specialist, Tea and Coffee
Development Board (NTCDB)

10:45 10:55

Tea Break

10:55 11:30

Present State of Coffee Production in Nepal: Opportunities and Challenges in Commercialization of Coffee sub-sector, Bhola Kumar Shrestha, NTCDB
Comments by: Dr. Pradip Maharjan, Agro Enterprise Center (AEC), Federation of
Nepalese Chambers of Commerce and Industry (FNCCI)

11:30 12:00

Marketing of Coffee in Nepal with focus on Import and Export Market, Mr. Vimal
Nepal, Trade Promotion Centre (TPC).
Comment: Mr Kamal Gautam, Agribusiness Promotion and Marketing Directorate

12:00 12:30

Research and Development in Coffee Sub-sector, Ram Bahadur KC, Nepal Agricultural Research Council (NARC)
Comment: Mr. Surendra Rijal, Tea and Coffee Development Section, Department of
Agriculture (DOA)

12:30 12:40

Summary and conclusions, Dr Kamal Raj Paudyal, PACT

12:40 13:10

Comments and suggestions from the floor

Jiwan Prabha Lama, DFTQC
Badri Prasad Bastakoti, COPP, Helvetas,
Binayak Kumar Misra, Tea and Coffee Development Board
Gopi Prasad Dhungana, NCPA
Mr. Hem Raj Regmi, MOAC
Mr. Haribabu Tiwari, MOAC
Dr. Bhabeshwor Pangeni, High Land Coffee
Mr. Durga Prashad Uprety, Agri-Commodity Export Promotion Program
Mr. Shyam P. Bhandari, NCPA
Mr. Purna Chhetri, Worldbank

13.10 13:15

Few Words: Ms Gayatri Acharya, Senior Economist, World Bank

13.15 13:20

Vote of Thanks, Dr. Ram Kumar Mandal, PACT

13:20 13:30

Remarks from the Chairperson and Closing

Annex 2: List of Participants

S.N

NAME

Designation

Office

Contact No.

Nathu Prasad Chudhari

Secretary

Ministry of Agriculture & Cooperatives

9841392220

Jiwan Prava Lama

DG.

DFTQC

9841491721

Purna Chhetri

Senior Rural Development Officer

World Bank

9851127253

Y.K. Karki

P.D.

PACT

9841275895

B.K. Mishra

Director

CTEVT

9841241925

Surendra Prashad Rijal

Senior C.T.D.Officer

Coffee & Tea Dev.section,Kritipur

9841406829

Dr. Binod Sharma

Govt. Prog. Dev. Specialist

IDE -Nepal

9851077576

Chut Raj Gurung

Program director

Fruit Dev. Directorate

9841352756

Ajay Bajracharya

Manager Agi.&Income Generation

Education for Income

Generation,Winrock

9851107182

10

Govinda Raj Giri

Manager

DCPA. Kavre

9849470465

11

Gopi Prashad Dhungana

General Secretary.

NCPA

9841237906

12

Vijay Mallick

DG.

DOA

9841335130

13

Hem Raj Regmi

Sr.Statistician

MOAC

9841324802

14

Dhakeswar Ghimere

Adviser

NCPA

9841210677

15

Shyam Prashad Bhandari

Chairman

NCPA

984150907

16

Narayan Prashad Dahal

Acounts Officer

PACT

9841562280

17

Dr. Kamal R. Paudyal

VC Development Specialist

TSG, PACT

9851047345

18

Dr. BIRENDRA BIR BASNYAT

Monitoring and Evaluation Specialist

TSG, PACT

9851098861

19

Bhola Kumar Shrestha

Technical officer

National Tea & Coffee Dev. Board

9841224605

20

Maya Tiwari

T.C.

DCPA Syangja

984613050

21

Om Nath Adhikari

Chairperson

DCPA -lalitpur

9741230375

22

Kamal Raj Gautam

Program Director

Agri-business Promotion and Marketing Development Directorate

01-5522439

23

Durga Prashad Uprety

Agri-Economist

Agri-Commodity Export Promotion

Program

01-5552971

24

Kulchandra Adhikari

Program Director

D.C.P.A. -Kaski

9846198162

25

Dr. Punya Prashad Regmi

Professor

IAAS

9851067238

26

Tika Ram Sharma

Sr.M&E Officer

PACT

9841215339

27

Bharat Bahadur Karki

FM Specialist

TSG, PACT

9851033962

28

Prem Prashad Dhungana

Procurement Specialist

TSG (PACT)

9841255898

29

Dr. Hari Babu Tiwari

Sr.Agri-Economics

Ministry of Agriculture

9841441383

30

Dr. Bhaveshwar Pangeni

Director

Highland Coffee Promotionco.Ltd.ktm.

31

Prachand Man Shretha

Team leader

COPP,HELVETAS

9851073957

32

Badri Prashad Bastakoti

Sr.Prog.Officed

COPP,HELVETAS

9849295710

33

Ram Bahadur K.C.

Sr. Scientist

NARC, ARS,Malepatan

9846020019

34

Janak Raj Sapkota

S. Editor

Kantipur,Publication/Nepal

9841557664

35

Rajesh Verma

Sr. Sub-Editor

Annapurna post

9849017401

36

Hari Bahadur Bohora

Chaiman

RAD,Nepal

9841643811

37

Krishna Gautam

Reporter

R.S.S

9841609329

38

Ramesh Pant

Camera person

mountain T.V

9849375823

39

Bishnu Marasini

Reporter

mountain T.V

9849663071

40

Rajeswar Karki

Chair Person

Mount Digit Technology

9851034016

41

Shekhar Singh Thapa

Finance Officer

Mount Digit Technology

9849035726

42

Netra Bahadur Bhandari

Agri-Extension Officer

Market Research & Statistics Mng. Prog.

MOAC

9841572079

45

46

43

Lakshan Kumar Pokhrel

Joint Secretary

M.O.A.C

9841222977

44

Pradip Maharjan

C.E.O.

AEC/FNCCI

9851007865

45

Bhagirath Acharya

Procurement Assistant

PACT

9841244800

46

Dharma Laxmi Shrestha

Asdministrative Officer

TSG

9841514277

47

Gayatri Acharya

Senior Economist

World Bank

48

Deep Narayan Gupta

Computer Operator

PACT

9849594845

49

Dr.RAM KUMAR MANDAL

Nodal Officer

PACT

9849594843

50

Sabin Shrestha

Computer Operator

PACT

9841881623

51

Mani Raj Paudel

Sub-Editor

Progress Magazine

9841264650

52

Govinda Chimauriya

Senior Repoter

Radio Nepal

9841322751

53

Vimal Nepal

Director

Trade Promotion Center

9851056883

Annex 3: Presentation Materials

1.

Introduction and Objectives

Mr. Yogendra Kumar Karki, Project Director, PACT

47

48

2.

Present State of Coffee Production in Nepal

Mr. Bhola Kumar Shrestha, Technical Officer, NTCDB

49

50

3.

Export scenario of Nepal Coffee

Mr. Bimal Nepal, Director, TEPC

51

4.

Actors and Stakeholders in Coffee Sub-sector

Mr. Shyam P. Bhandari, Chair person, NCPA

5.

Opportunities and Challenges in Coffee Production

Mrs. Maya Tiwari, DCPA, Syangja

52

6.

Research and Development in Coffee Sub-sector

Mr. Ram Bahadur KC, NARC

53

54

7.

Activities and achievements of CoPP and its present activities in support of

the commercialization of coffee sub-sector

Mr. Prachanda Man shrestha, CoPP, Helvetas

55

56

The Coffee

Government of Nepal
Ministry of Agriculture Development

Project for Agriculture Commercialization and Trade

Sallaghari, Maharajgunj, Kathmandu, Nepal
Phone: +977-1-4017765 | Fax: +977-1-4373236
Web site: www.pact.gov.np, Email: mail@pact.gov.np