Kathmandu. In the last few years, the aroma of coffee has been welcomed everywhere, be it in Kathmandu’s main square or in the street. Whether it is the valley or the cities outside the valley, the importance of coffee has increased everywhere.

The gleaming cafes along the ÷streets of every city are indicative of modern lifestyle. Until a few years ago, people used to get excited about tea. People were more attracted to tea than coffee.

Coffee seems to have become the ‘first choice’ of many young people now. For people, cafes have become cultural centers not only for dining but also for social gatherings, office meetings, and personal leisures.

Coffee culture in Nepal has spread in such a way that cafes are opened in every corporate, administrative area and inner cities in the city. A cup of coffee has become an indispensable tool on the face of every person who walks to the office or other work in the morning.

How is this cup of coffee prepared? How much does it cost? And with this growing culture, what is the status of coffee cultivation and import in the country? These questions will help you understand the reality of coffee in Nepal.

The initial cost of running a café that makes only one coffee in a place with a cheap rent is 5 to 10 lakhs. “It takes 6 months to a year to run a café that is run at such a high cost. Suraj Krishna Shrestha, proprietor of 21 Coffee House in Nag Pokhari, said.

At the same time, Shrestha says that the minimum cost to buy a coffee machine is above Rs 2 lakh. “The essential thing for a café is a coffee machine,” he says.

The biggest expense of running a café is on furniture. The café has a minimum investment of more than Rs 3 lakh, including table-chairs, counters, bar-stools, sofas, dining sets, etc. “After operating the café, we have to manage everything from the cup set accordingly, which costs upwards of Rs 1 lakh,” Shrestha said.

Another important expense that comes after furniture is the use of cups, sets and other items. To make a café a café, you have to set aside a sum of more than Rs 1 lakh to add all the materials from beautiful mugs, glasses, dispensers, plates, jugs, water glasses, milk jugs.

Interior design is another important aspect of café operations. Wall art, lighting, wooden frames, colors, counter setup, photo-zone, rack and décor. All of this costs more than Rs 2 lakh.

For the first 6 months to 1 year, the café must be put on hold and the number of customers must increase. Shrestha said that the daily sales will not be able to cover the operating expenses during this period. According to him, the monthly rent in Kathmandu’s business sector goes up to more than Rs 1 lakh, adding the salary of the employees will cost more.

The cost of making a cup of coffee varies from café to café, but on an average, it costs between Rs 80 and Rs 110 to make a simple cap or latte, according to a businessman who runs a café in Naxal. This includes all the expenses of coffee making machines, coffee bins, milk, gas-electricity, cups, employee hours, house rent, etc.

The price that the customer pays is a bit higher. Customers can drink coffee at different prices depending on the location and café. Generally, the average price of coffee is between Rs 150 and Rs 250.

Café owners say that the price of coffee is determined by profits, expenses and market conditions in the coffee business. Coffee prices have also increased due to the proliferation of cafes, increased investment in décor and renting spaces, and the addition of international-style menus.

Today, the coffee business is not limited to the city. As the consumption increases in the cities, its consumption is also increasing in the villages. As a result, coffee farmers are also getting attracted to it. However, domestic production in Nepal has not been able to meet the demand for coffee.

It has been decades since coffee farming expanded in Nepal. But the product is still in small size. Farmers are excited, but the production system is traditional. Farmers have been saying that coffee farming has not been easy due to lack of necessary skills, technical support, quality enhancement and market access.

With the rise in café culture in various parts of Nepal, there has been an increase in ‘home coffee consumption’. In the past, it was less common to make coffee at home. Nowadays, the use of coffee is increasing in every home and office. Homemade coffee is cheaper than cafés. Normal black coffee is made at home for 6-9 rupees, even if made with milk, it does not reach more than 25 rupees.

As a result, millions of rupees worth of coffee are imported into Nepal every year, according to the statistics of the Department of Customs. According to the data released by the Department of Customs, Nepal imported coffee products worth Rs 53.9 million from abroad till mid-November.

Nepal imported 73,698 kg of coffee during the period. The government has collected revenue of Rs 3.19 crore from the import of coffee. In the current fiscal year, the highest quantity of coffee has been imported from India.

According to the data of the Department of Customs, coffee is imported from Australia, Bahrain, Brunei Darussalam, China, Hong Kong, India, Israel, Japan, South Korea, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, United Arab Emirates, United Kingdom, Canada, Greece, Cypers, East Timor, Germany, Italy, Netherlands, New Zealand, Thailand, Uganda and Vietnam.

The demand for coffee in Nepal is much more than the production can handle. Therefore, traders say that Nepal is heavily dependent on coffee imports. Currently, cafes and hotels and restaurants are running their business on the same imported beans.

Coffee farmers in Nepal are also excited about the expansion of coffee business in Nepal. However, they are challenged by lack of necessary technical training, modern technology, disease control, and improved seeds. Farmers complain that Nepal has favorable climate and water for coffee farming, but the preparations of the government and private sector to convert it into an opportunity are incomplete.

“The growth of the café business is very communicative because it is a great way to create jobs in the service sector. A café entrepreneur says, “Young entrepreneurs are attracted to open cafes, which has led to economic activity.” ’

According to the statistics of the Department of Customs, coffee produced in Nepal is now being exported to the world market as well. According to the statistics of the Department of Customs, Nepal exported coffee worth Rs 33.94 million to different countries in the first three months of the current fiscal year.

Nepal has produced and exported 18,272 kg of coffee in the first four months of the current fiscal year. During this period, the highest export of coffee from Nepal was to Switzerland. Switzerland has exported 7,698 kilogrammes of coffee from Nepal in the first four months.

Coffee is exported to Austria, Canada, Czech Republic, Germany, Hong Kong, Hungary, Japan, South Korea, Malaysia, Poland, Switzerland, Taiwan, the United Arab Emirates, the United States, Norway and India.

Experts have been saying that there is a lot of potential for coffee production in Nepal. Coffee cultivation is very favorable in the mountainous region.

Coffee farming is taking place in North Gandaki, Baglung, Syangja, Palpa, Gulmi, Ramechhap, Lalitpur, Sindhupalchowk and Ilam.