Interview with Nishchal Banskota, Nepal Tea Collective
In this edition of Masters Talk, we have the privilege of conversing with Nishchal Banskota, the visionary founder and CEO of Nepal Tea Collective. Join us as we undertake an enriching journey into the heart of Nepal’s tea culture and production. Discover the intriguing developments shaping the future of the tea industry in Nepal, including the emergence of tea tours and more. Nishchal, the driving force behind Nepal Tea Collective, is pioneering a social enterprise that directly connects certified organic teas from Nepal to the American market and beyond, while fostering closer bonds between farmers and consumers. Returning to his roots in Nepal after completing his education, Nishchal’s passion for tea led him to establish the Nepal Tea Collective and country’s very first Tea Bar in Nepal, driven by a mission to enlighten people about the diverse world of Nepali tea via his innovative business approaches.
Founders of the Nepal Tea Collective: Nishchal Banskota (right) and Pratik Rijal (left).
- It’s truly a pleasure to have this conversation with you today, Nishchal! As someone who hails from a tea-producing family, could you share with us how your personal journey into the world of tea began?
Nishchal: To be very honest, I was never into tea, though I was actually born on a tea farm. Tea was always the topic of conversation in our family since three of my sisters worked in tea, and of course, my dad, who is still the chairman of Kanchanjangha Tea Estate and Research Center. My mom was also passionately guiding the tea farm, though a bit from behind the scenes. However, for me, I was drinking quite a bit of our traditional chiya (CTC with milk and sugar) when outside with friends and some orthodox black tea while I was at home. My first formal involvement with tea was when I was coming to the US, and I had a few months of free time. I designed and edited KTERC’s product profile.
After I came to the US for my undergraduate studies, I never really thought about tea or had any plans of getting into the family business or even the tea business. I came to the US to actually become a certified public accountant (CPA), but who knew four years of liberal arts college would completely kill the CPA in me and make me a chiyawala (someone who sells tea in Nepali). My initiation into the tea industry was for a very different reason, though. I studied business as my formal degree, but I have always been passionate about social impact, and my liberal arts college experience validated that more and more.
So, when I finished college in 2015, I was desperately looking for a way to merge my business degree with my passion for social impact, especially in the education sector. I would spend countless hours during my senior year thinking about business ideas, but none seemed to excite me. Sadly, right during my graduation in May 2015, Nepal was struck by the biggest earthquake, which left the country devastated. I went back with the hopes of helping as much as I could and being closer to the family. During that time, when I was volunteering, I realized more and more that I loved the impact one person or one company can create. When I analyzed our farm more and got to know more about the history of KTE and the tea industry, a light bulb went on. What I was looking for all this time—merging business with social impact—was happening right in our backyard. KTE was operating in exactly the same model and found quite some success.
Kanchanjangha Tea Estate and Research Center. Mt. Kanchanjangha is the third-highest mountain in the world. Its summit lies at 8,586 m.
To understand the model better, to expand its reach, and to test my own potential, I started helping Samikchya, my older sister, to develop a local market for our KTE teas. This put my business learnings to the test, and we developed a great sales team and got our teas into some of the biggest supermarkets in Nepal. As I got more and more into tea, I saw the immense potential in Nepali teas and started the first one-of-its-kind tea bar along with my sister to really educate our local consumers about orthodox teas, which were consumed in almost negligible amounts locally compared to CTCs. When we opened, we did not even allow milk and sugar in our tea bar and really tried to educate people in a much purer way. However, that, along with a location issue (we opened on the second floor), meant we could not sustain that for a long time.
The more I got into tea and understood the potential and challenges of Nepali teas, I realized that the biggest thing that was missing was branding and the origin stories and how we as a country are so reliant on the Indian tea market to sustain the industry. After about nine months in Nepal, I packed my bags again to return to the US in the hopes of creating an identity for Nepali teas along with the stories of our dear farmers who toil every single day to make this beverage. I realized how much our village had transformed from an impoverished area to a thriving community, and the biggest and most important catalyst for that had been the tea industry. I wanted to replicate that in other areas in Nepal while building a global reputation for Nepali teas. Hence, my journey in the US began when I registered Nepal Tea Collective (previously Nepal Tea LLC) on March 11, 2016, and it has been a long but really fulfilling journey ever since.
- That’s wonderful! Before we dive into the intricacies of Nepal Tea Collective and your vision for the future of Nepali tea, could you provide our readers with a glimpse into the rich history and cultural significance of tea in Nepal? From the beloved local favourite, chiya, to the unique yak butter tea enjoyed in the Himalayan region, how has the production and consumption of tea evolved over time?
Nishchal: Nepal sits in the middle of two of the biggest tea-producing regions, India and China, and therefore it is no surprise that our tea-drinking habits and culture are intertwined with both of these countries to an extent, mostly in the south rather than the north, though. “Chiya,” meaning tea in Nepal, is found in almost every fabric of our daily lives. As soon as we wake up, the first thing is to make chiya in many different ways to please the varying palates and restrictions everyone has. To give you an example, I remember growing up, the varieties of cups we would need to make just for our family: for Mom and Dad, it’s green tea they start their day with, followed by a cup of chiya with milk and sugar for Dad but no sugar for Mom. For one of my sisters, it was black tea with some spices and no milk and no sugar, and for one of my other sisters, a freshly squeezed lemon on black tea was a must. When guests would arrive early in the morning, they had their own preferences, and so on. By the time it was around time for lunch, I think we would have made almost 25-30 cups of tea easily, and I am sure it was the same with other families in Nepal.
“Chiya khayeu” is a phrase that is asked anywhere you go around the country. Drinking tea is engraved so well as a daily ritual that we ask if people have had their tea when we greet them. Similarly, chiya becomes the initiator of any and all conversations in Nepal. You are talking politics, day-to-day catchup with friends, waiting for someone, taking a break, or just about anything—tea becomes the de facto companion in Nepal.
Similarly, in the Himalayan region, where I do not have much experience, they drink their own version of tea with yak butter to help them with energy and fight the colder climate. Some regions in the Himalayas are also drinking puerh teas influenced by Tibet and China, which is almost unheard of in the hilly and Terai regions of the country.
Mr. Deepak Prakash Baskota gets inspired by the tea plantation and business in Darjeeling and comes back to his village, Phidim (Eastern Nepal), with a vision of starting a tea farm to rid his community out of poverty.
The history of tea in Nepal is quite interesting. Without getting too deep into it, the most well-believed and documented history is the prime minister of Nepal in the mid-19th century receiving some tea seeds from the Chinese emperor. Though some small plantations were started around the same time in Nepal as in Darjeeling, due to political instability and not much interest in tea, the tea industry could not get its formal start until around the 1950s. With the establishment of the Tea Coffee Development Board, a little more investment flowed toward tea, and a few commercial gardens started to emerge. However, at the time, Nepal was selling just the raw green leaves to Indian brokers/factories and not processing their own teas. It was only in the late 70s that the first tea factory of Nepal was established in Ilam, and five different districts were named as the tea regions in eastern Nepal.
Looking at the production, most of the teas produced are still CTC teas, especially in the southern part of the country, and most of it is consumed locally or sold to India. The orthodox tea production has the same story. Produced mostly in the hilly region, most of the orthodox tea is exported, out of which the biggest export, almost about 90%, goes to India. There is a huge reliance on India for Nepal’s export tea market, which is starting to change recently but still has a long way to go.
While until the late 90s, the orthodox tea was dominated by Indian machines and Indian-style teas, more smallholder farmers secured smaller Chinese machines and are opting for specialty teas in low quantities these days. In recent years, there have been quite a lot of small tea factories that have been gaining a reputation in the global tea market.
In terms of consumption, though the market is heavily dominated by our famous CTC chiya with milk and sugar, the younger population especially is starting to explore the fascinating world of orthodox specialty teas and tea blends, even opting for herbal teas quite often.
- What are the primary tea production regions in Nepal and what are some distinctive characteristics of Nepali tea that contribute to its flavour profile and differentiate it from teas produced in other regions? Given its proximity to Darjeeling, Nepali tea often faces challenges in establishing its own identity. How do you navigate this issue?
Nishchal: Tea is grown in various parts of Nepal and is concentrated in the eastern region, while there are several plans to expand tea production in the western region of Nepal, which remains unexplored. I always think about tea as wine, and while there are so many similarities among all teas in the world, just like wine, there are some nuances in tea from specific regions in particular. We have some specific floral qualities in teas from Nepal that are quite distinct, and there are several factors that contribute to this uniqueness, namely: age of the bushes, micro-climate and the terroir, young tea makers, and the virgin acidic soil.
The Nepal and Darjeeling issue is not new and has been going on for several decades, and it is also not a simple black-and-white issue to untangle. Not just tea, but people in Darjeeling and even the place itself is quite contested in identity, and so the social, political, and other intricacies are so difficult to navigate in general. However, I tend to stay a bit away from the social and political side and see the challenges in establishing Nepal’s identity in a more economic way. This audio documentary made by BBC really gives a 360-degree lens into this entire issue if someone is interested in listening and learning more. However, for starters, thinking of tea as wine and whiskey and distinguishing ourselves as a separate origin and talking about our new production techniques, the experimentation being done by the passionate young tea makers, the age of the bushes, and the elevation and its micro-climate really allows us to distinguish ourselves with the stories of Nepali teas from any other region around the world. Lastly, the numerous international awards Nepali teas have been gathering where we compete with numerous teas from numerous tea regions from all around the world really speaks for itself in terms of the increasing quality of the teas from this region.
- Could you elaborate on the ethos and guiding principles that underpin the brand identity of Nepal Tea Collective? Additionally, could you share a brief history of how the collective was founded and highlight some key milestones along the way?
Nishchal: There are two major underlying ethos behind Nepal Tea Collective. The first is to create an authentic identity for Nepali Tea. For far too long, Nepal has remained under the shadows of tea-producing giants. While this might have been the need of the hour for the past century, it is starting to become quite unsustainable as we navigate the 21st century and the technology that we have access to in today’s world in every mode of the supply chain. It is now time to build an authentic niche identity of Nepali teas that gives the most deserving credit to the hardworking farmers and allows them to make a decent living rather than being forced into a vicious cycle of poverty.
The second ethos is to create a standard for traceability and transparency. The global tea industry suffers from this issue, and we want to create such a transparent supply chain that allows consumers to be really educated and connected to the primary producers as much as they can. Being able to know where your food is coming from and paying homage to the hardworking hands that made it possible should not be a feature but a norm. For this, we’re envisioning a system where you can scan a QR code on all of our teas that will allow you to trace the teas from farm to cup and also be able to tip the farmers right there. All of this is to reach our ambitious goal of getting one million farmers out of poverty within their generation and within my lifetime. Because tea being the most popular beverage in the world and the farmers living under poverty is just not fair.
Tea producers: Nikesh Gurung (on the left) and Chandra Prakash Bhattarai (on the right).
I started Nepal Tea Collective in 2016 and attended the World Tea Expo that year in June, which validated my business model right away since I found my first-ever customer. They had been buying our teas for over a decade but through a middleman, and they were looking to forge a more direct relationship with our farm as well as have access to much fresher and higher-grade teas. Since then, we have always been trying to find buyers with a shared purpose of supporting the tea industry and especially the farmers. After that, there was no looking back. I conducted a Kickstarter campaign to raise enough funds to get the business off the ground, and to my utter surprise, 473 people in the tea community came together to support my venture by allowing me to raise more than $50K in 2017. Since then, I have been a fan of crowdfunding and the power of the crowd.
The next milestone we had was when our white tea won its first global championship bronze medal in 2019, which propelled our validation through the roof. One of the biggest challenges we faced was during COVID-19, where we lost almost 80% of our entire wholesale business, but thankfully we had invested organically in our direct-to-consumer commerce business that kept us afloat while the pandemic subsided, and we actually got almost all of our accounts back. Our direct to customer (DTC) business at the time grew twofold during the uncertain time.
Sonam Paljor Lama, Nishchal Banskota, and Sharad Subba Limbu.
My biggest highlight was getting Pratik Rijal onboard as a co-founder to lead the wholesale part of the business, and if I could go back, I would bring him in on the first day of my business. We grew up together, and it was a no-brainer for me to find a way to work with one of the people I trust the most. Under Pratik’s leadership, the wholesale part of the business has grown and is growing at more than 50% each year, and we are so happy to be working with some of the most reputed tea companies in the tea industry.
Similarly, my next big highlight was to onboard Amigo Khadka as my other co-founder in 2023, and again, if I could, I’d have him come in on day one. Under his leadership, our team has grown from a mere five people to 30 people in Nepal, with an office, a separate Nepali market, and three tea bars, along with countless other projects in the pipeline. Today, it really makes me proud that I persisted during the most difficult times in the business and as a one-person company. Now, we dream of changing the tea industry for the better with 30 different amazing minds rather than just one, and I am so happy to have been able to create this platform for myself and all of our team members to create meaningful impact within ourselves and the farmers in Nepal.
Amigo Khadka and Pratik Rijal with tea producers in Ilam.
- Can you provide a concise overview of Nepal’s tea industry, along with challenges faced and potential solutions, as well as opportunities you envision?
Nishchal: The Nepali tea industry is really at a pivotal stage, with amazing potential but also quite some challenges. With the growing reputation of its quality, numerous awards in its bag, and a peaked interest from buyers from all over the world, it is no doubt gaining momentum in the tea industry, and it is primed for growth from many different avenues.
However, we are still heavily reliant on our neighbour India to sell our teas. To combat that, we need to diversify our market to mitigate long-term risks. I believe we are already seeing signs that more and more people are interested in direct trade, especially in the specialty tea sector. Young second- and third-generation tea producers are starting to create their own brands and market globally. Big buyers from China have recently committed to quite some volume out of Nepal, and there has been an uptick in the consumption of almost all varieties of teas locally. All of these forces combined should really allow us to de-risk from over-dependency on India for our sales. However, this is a long process, and we cannot expect this to happen overnight.
Similarly, another big challenge is the age of the tea farmers. This might not just be Nepal’s problem but an overall tea industry problem, where the tea plucking population is aging, and the second generation is not going to continue plucking teas as it is more of a low-paid, high-intensity work. We need to refine our systems of plucking for lower-grade teas through machines and for specialty teas to make it lucrative for the upcoming generations to get into the business, just like wine and whiskey. The younger generation needs to feel empowered and make a great living by plucking and making teas, and they need to feel proud of their craft. We are hoping to do that by creating and marketing these young tea makers all around the world and by being able to share top-line revenue and make them partners in the business and not just suppliers.
Another untapped opportunity remains tea tourism. Nepal is already famous for tourism in general, and it is high time for us to incorporate tea tourism into the mix to diversify income for the tea producers and farmers. Many different models can be implemented, from homesteads to resort styles to skydomes and immersive experiences such as the one we are currently providing.
Immersive tea tourism in Nepal.
Educating our consumers will remain key as we expand, and it should be a priority to open up as many tea bars and tea cafes in the country to really showcase our identity through the lens of tea.
- Nepal Tea Collective has been doing a grand job at promoting Nepali tea, achieving notable success in the US; additionally, you actively engage with the local tea community in Nepal, as well as participate in the European Speciality Tea Association, too. How does the collective engage with tea enthusiasts and educate consumers about Nepali tea culture, through avenues such as corporate tastings and tea expos? Your unique business model serves as an inspiration for all of us working with tea.
Nishchal: First of all, thank you for acknowledging our efforts; we truly appreciate it. Sometimes it feels like we are all over the place and doing way too many things. However, everything we do revolves around the same fundamental idea of creating an identity for Nepali teas and making people aware of this amazing beverage and how it can really change an entire community. The tea expos and tea festivals are a crucial component of our marketing mix since this is where we can really interact with our end consumers, tell them our story, and get expert feedback for our teas firsthand. Similarly, we provide quite a variety of services, making it the perfect ground to sell teas, get feedback, book customers for tea tours, forge partnerships, and close some wholesale accounts as well. It might sometimes feel difficult to figure out the exact ROI of all of this, but we feel it is our only chance to really talk to and understand how we are perceived in the tea industry, and we would always want to be at the forefront of that. Also, it’s the tea people we want to find, talk to, and create lasting friendships with!
Corporate tea tastings have really expanded over the years, and I cannot thank our dear friends at Driftaway Coffee, Suyog and Anu, enough for introducing us to this side of the business. Tea is always a part of a conversation, and we have found a way to create an amazing team-building activity around tea that companies pay for, and the team members really enjoy learning and interacting with tea in a way they never have. This is the perfect way for us to engage in educating potential customers about not just our products but the overall tea industry and give them an opportunity to explore the tea industry further.
- The tea tours organised by Nepal Tea Collective seem truly remarkable, offering a captivating fusion of Nepali culture and tea appreciation. Could you share more details about these tours and your vision for tea tourism in Nepal?
Nishchal: Yes, these tea tourism packages that we offer are actually quite an interesting take on the world of tea. We fundamentally believe that tourism, where people just go and see places and take pictures, has now transformed. In today’s world, people are looking for more of an immersive experience rather than just visiting and seeing places. This also falls exactly in our realm of connecting the consumers to the primary products and bridging that ever-widening gap between them.
Our main offering, a 10-day tea tourism package, provides a unique perspective of Nepal as a country through the lens of tea. With a few days of touristic site visits in Kathmandu, the capital, we merge those experiences with more community activities such as homecoming sessions that allow the tourists to really see and appreciate the day-to-day life of the common people and understand the food and culture not just by eating it but by actually making it in a family kitchen along with the locals.
Similarly, we then take you across the country to five different tea factories and tea gardens in the tea capital, where you’ll get to experience tea from a wide variety of angles. You’ll see a couple making tea on their roof, a fully automated CTC tea factory, an experimental specialty tea factory, a factory with a few workers, and a factory with a large working population. You’ll get immersed in the diverse tea-making techniques around the tea capital and get to experience other unique uses of teas, such as tea-smoked chicken and tea-smoked cheese.
You’ll then finally get to our family farm, which allows you to make your own teas from start to finish over the course of two days. You’ll pluck your own teas along with my farmers, process your own teas under the supervision of our tea maker, and then blind taste the teas that you made among the traveling group and determine the winner. You get a glimpse into the world of making tea and hopefully an elevated appreciation for tea and the people who make tea. All of this action is happening while you are staying in glass igloos in the middle of a tea farm nestled in the foothills of Mt. Kanchanajangha, the third highest peak in the world. This is truly a full-circle experience we offer where anyone from a novice to a veteran tea maker can appreciate the tea-making process in their own realms.
Tea production and running factories and gardens come with their own challenges, and in the current environment of rising costs, it is a very smart move, I believe, to diversify the income source for the tea-producing regions through tea tourism. Tourism itself is a lucrative industry, and being able to include some form of tea experience, be it tea tasting sessions, a short trip to the tea farms, or even a fully immersive trip, is of quite the value since you can really give a beautifully customized experience that is unforgettable. Nepal is already a tourism-heavy country, and there are so many ways to incorporate tea in every single angle for the tourists, and we should be incorporating tea tourism or just some basic tea experiences within any kind of tourism.
- You’ve launched the Nepal Tea Foundation, an empowerment and education program for rural communities involved in tea production. Could you provide some insights into this initiative?
Nishchal: Yes, Nepal Tea Foundation was started at the peak of COVID-19 as a way to channel donations from our customers and well-wishers to create a farmer’s emergency fund to be utilized in case of emergency. This was such a successful campaign that we were able to donate food, conduct medical camps during COVID-19, and provide the needed assistance to our farmers.
Furthermore, our family farm was already sponsoring education until high school for all of our full-time farmers. This was such an important and impactful project for farmers that we were able to expand that support to our packing facility workers and other children. We will continue to do so as we receive more support.
Lastly, we have now pledged and already put into effect 1% of our top-line revenue distribution to the farmers, and that work is being carried out by the foundation as well. Last year alone, due to the 1% distribution program, we were able to increase the wages of more than 70 farmers by 10%. Similarly, we have recently started a “Tip Your Farmer” feature in all our loose-leaf teas and tea bags, where you can tip the exact farmer who made your tea, and we guarantee 100% of that distribution goes to the farmers.
- The first flush of this year has yielded exceptional results! Could you provide us with further insights into this year’s harvest and offer a glimpse into the production process at the Kanchanjangha tea estate? I’ve heard intriguing accounts about how the timing of the first flush harvest is synchronised with guidance from local astrologers for an auspicious start, followed by a traditional blessing from the Gods. Could you elaborate on these fascinating rituals?
Nishchal: This year’s first flush harvest was truly remarkable. We had just set in place a new harvesting cycle and motivated farmers to pluck the best leaves to allow for a perfect first flush production. Every first flush harvest is a highly symbolic time in the tea-producing and processing cycle, so it has to be an auspicious time and date that is determined by the astrologer and the priest to start off the tea production season, especially the first few pluckings. The first small harvest is actually offered to the gods as a thank you for the start of the harvest and also as a way to get blessings for the entire season. In Hinduism, all good work must be initiated by worshipping the gods and asking for their blessing, and the harvest of the season is no different. In fact, it is the most important since it really gives momentum and sets the tone for the rest of the year.
In terms of the production of the first flush black tea, we make a light and bright cup that resembles the season at which the tea is harvested. Though you can easily make a malty black tea with the first flush leaves, tea makers generally try to resemble the spring and the fresh, floral, and happy characteristics that the season brings in the cup itself. There’s a saying in the art of tea making where people say that we don’t make tea; it is nature that does, and our job is to simply protect it and preserve it in the most appropriate form that resembles and captures the essence of that season. Hence, that is exactly what we try to do with every batch of tea production.
- With the recent opening of the first Tea Bar in Kathmandu, what are your future plans or initiatives to further promote Nepali tea and expand the reach of your brand?
Nishchal: I have always had a calling for tea bars where we can truly elevate the experience of tea for people beyond the typical chiya, and I believe we have finally found our footing in this area, and we are only getting started. Our strategy has been to partner with the right people at the right locations to expose the charm of Nepali tea to as many Nepali and foreign people as possible. With our collaboration with Kathmandu Guest House, we are able to give an authentic experience of tea to people from all over the world and allow them to immerse themselves in the tea culture. Furthermore, we are able to showcase our teas in such elevated ways, where we cold-brew our white tea for 24 hours and serve it in a champagne glass, calling it White Champagne, really giving the customers a chance to look at tea from a different angle that they will never forget.
Similarly, we recently partnered with Himalayan Java (think Starbucks of Nepal) to open tea bars inside their premier locations around Kathmandu. This allows us to showcase our teas alongside the amazing coffee that the country produces in a setting that is already super busy and loved by locals and foreigners alike. We have already opened our tea bars in two of their locations and are in the process of opening many more in the coming years.
Katrina Wild with the team of Nepal Tea Collective in their Kathmandu office after teaching classes on tea for the marketing team. Right: The first Tea Bar in the Kathmandu Guest House with the NTC team, Sharad Subba Limbu, Sonam Paljor Lama, and Hongmei of Suiro Tea.
Janaki Khadka. She manages Bhakanje Tea Estate producing Everest black tea, which stands proudly at an elevation of 2678 m above sea level, making it one of the highest tea plantations globally. Situated in Nepal’s breathtaking Solukhumbu region, it is the only professional tea estate nestled in the lap of Mount Everest. The estate is managed by women, serving as a pioneer empowering women in the tea industry.
- Finally, what advice would you give to someone who wants to explore the world of Nepali tea?
Nishchal: For anyone wanting to explore the world of Nepali tea, just go ahead and get started! Taking the first step is usually the most difficult part, but as you immerse yourself in tea, you will learn more and find it impossible to turn back. Whether it’s through blogging, educating, tasting, opening a cafe, or any other sector, find a person or company who has done it before and talk to them about your aspirations. Find a way to collaborate or learn and just get started.
People, or at least we, don’t believe in hiding things. In fact, we firmly believe in the ideology that a rising tide lifts all boats. Let’s make our voices louder to create an identity for Nepali teas so that our collective identity is elevated, and we can all prosper, making the world of tea fair, sustainable, and impactful.
- Thank you very much for sharing with us the forever exhilarating world of Nepali tea!
Photos were provided by the Nepal Tea Collective. Thank you Kajina Shrestha!