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The Nepal Stock Exchange (NEPSE) plunged by 8. 71 points to close at 2,049.28 points on Thursday.

Similarly, the sensitive index dropped by 5. 12 points to close at 379. 16 points.

A total of 16,052,101-unit shares of 303 companies were traded for Rs 5. 58 billion.

Meanwhile, Kalika power Company Ltd and Singati Hydro Energy Limited were the top gainers today with their price surging by 10. 00 percent. Likewise, Siddhartha Premier Insurance Limited was the top loser with its price dropped by 5. 56 percent.

At the end of the day, the total market capitalization stood at Rs 3. 18 trillion.

Nepal’s tea exports witnessed a decline in the first five months of the fiscal year 2023/24.

Data released by the Department of Customs shows that Nepal exported 7,181 tons of tea valued at Rs 1.87bn over the five months of 2023/24, in contrast to 10,065 tons worth Rs 2.23bn during the same period in the previous fiscal year.

The decline in tea exports during this period is attributed to farmers holding onto their stock in anticipation of obtaining better prices, according to traders. Notably, exports of special tea varieties decreased in this period. Special tea varieties such as green tea, white tea, gold tea, and silver tea are known to command higher prices in the international market.

Although there is a high demand for Nepali tea in the international market, Nepali producers are facing challenges in sending their products abroad. Indian traders take advantage of this situation by purchasing Nepali tea and exporting it to international markets, say Nepali farmers.

Farmers claim that Indian traders offer them around Rs 550 per kg for tea but sell the same product to international buyers for as much as Rs 3,000 per kg.

Nepali farmers cultivate CTC (crush, tear, curl)  and orthodox varieties of tea. Tea farming is done across 20,237 hectares in 30 districts. Nepal has around 160 tea gardens and over 17,000 people are involved in tea farming. However, major production is concentrated in districts like Jhapa, Ilam, Panchthar, Terhathum and Dhankuta in eastern Nepal. Tea is also grown in districts such as Bhojpur, Khotang, Chitwan, Sindhuli, Parbat, Kavre, Gorkha, Dolakha, Lalitpur, Ramechhap, and Pyuthan, among others.

Nepal’s annual tea production capacity is approximately 26,300 tons. Of the total production, about 6,500 tons is orthodox tea, while green tea accounts for around 730 tons and the remaining is CTC tea.

Nepali tea is exported to various countries, including Australia, France, Canada, Denmark, China, Germany, Japan, Italy, the Netherlands, the United States, Poland, Sweden, Thailand, Taiwan, and India.

Meanwhile, the government has begun branding exercises in a bid to enhance competitiveness and access of Nepali tea in the national market. The Nepal Nepal Tea and Coffee Development Board has started preparation to establish a brand identity for Nepali tea. The board has invited designers to create and submit a logo for Nepali CTC tea with the slogan ‘Nepal Tea-Premium CTC’.

The price of gold has dropped by Rs 1,300 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 119, 500 per tola today.

Meanwhile, tejabi gold is being traded at Rs 118, 950 per tola.

Similarly, the silver is being traded at Rs 1,420 per tola today.

Nepal is seeing the first diplomatic visit of 2024 from India. Indian External Affairs Minister S Jaishankar is arriving in Kathmandu for a two-day visit on Jan 4.

Jaishankar will lead the Indian delegation in the 7th meeting of the Nepal-India Joint Commission—the highest bilateral mechanism between the two countries. The delegation will include Indian Foreign Secretary Vinay Mohan Kwatra, Anurag Srivastava, Nepal desk chief at the Indian External Affairs Ministry, and other high-level officials.

Among the key agendas of the meeting is the formal signing of the Power Purchase Agreement (PPA) which will pave the way for India to import 10,000 MW of hydropower from Nepal in 10 years, energy ministry officials say. The 11th meeting of the Nepal-India Joint Steering Committee in Chitwan will finalize the agreement. However, secretaries of both countries have yet to sign the agreement to formalize the long-term PPA.

The preliminary agreement for the long-term PPA was signed in June. It was endorsed by the Indian cabinet in September. Nepal had presented the draft of the long-term PPA to India during Prime Minister Pushpa Kamal Dahal’s visit to the southern neighbor from May 31 to June 3.

Pancheshwar in limbo

High-ranking government sources reveal that the upcoming diplomatic visit will not make progress on the Joint Detailed Study Report (DPR) of the Pancheshwar Multipurpose Project.

Despite being proposed nearly seven decades ago, the Pancheshwar project still remains confined to paper. A former Indian ambassador to Nepal expressed skepticism about the project, stating that neither country is genuinely committed to advancing the project. Despite being a recurring topic in high-level discussions, there is a lack of genuine commitment from Nepal and India to implement this mega project, he added.

An official from Nepal’s energy ministry echoed the sentiment. “The project won’t move forward without political commitment. The joint mechanism between the two countries cannot resolve the issue,” he added.

While the initial disagreements on the joint DPR of the project numbered over 500, most of them have been sorted out. The two sides reportedly have differences or just two or three issues now. Both nations have struggled to form a common stance on water use. “The project has been stalled because the countries are prioritizing self-interests over bilateral concerns regarding water usage,” the energy ministry official said.

India first identified the Pancheshwar Project on the Mahakali River, which serves as the border between the two countries, in 1956. The two countries decided to form a joint team to study the project in 1978. Nepal established the Pancheshwar Multipurpose Project Office in 1988. The 1991 Pancheshwar Multipurpose Project Report stated that 6,720 MW of hydropower can be generated - 6,480 MW by building a 315-meter rock-filled dam at Pancheshwar, and an additional 240 MW by building an 83-meter regulating dam at Rupaligad. Nepal prepared the Detailed Project Report (DPR) for the project in 1995 based on the findings and insights derived from the 1991 report.

Nepal and India signed the Mahakali Treaty for the integrated development of the Mahakali River, which included Sarada barrage, Tanakpur barrage and Pancheshwar Dam Project, on 12 Feb 1996.

In 2009, Nepal and India agreed to form the Pancheshwar Development Authority to implement the project. In 2014, WAPCOS Limited, a government undertaking of India, was assigned to prepare a joint DPR by studying separated DPR prepared by the two countries. WAPCOS submitted the DPR in 2016. However, differences arose between the two countries on the DPR as it reportedly contradicted the Mahakali Treaty signed by the two countries. An agreement was reached to finalize the DPR within three months during Dahal’s India visit. However, there has been no progress even though it has already been seven months since the agreement was reached. 

The project also aims to control floods in Kanchanpur district and irrigate 93,000 hectares in Kanchanpur and 1.6m hectares in India.