Nepal, June 14 -- Nepal's tea industry, which earns more than Rs 4 billion in foreign exchange annually, faces a major crisis after India imposed stricter import checks on Nepali tea. Tea processors in Ilam have announced they will shut down their factories from June 15 if the restrictions are not lifted.

The move follows new procedures introduced by India's Tea Board on May 1, requiring mandatory quality testing for every shipment of Nepali tea. Industry representatives say the rules have effectively blocked exports during the peak first flush season, when the highest quality and most valuable tea is produced.

According to the Suryodaya Orthodox Tea Producers Association Nepal, which represents 53 factories, more than 300,000 kilograms...