Nepal has decided that it should no longer be compulsory for coffee exporters to use letters of credit (L/Cs) every time they make a sale abroad.

The move is part of a programme to boost the country's tea and coffee industries.

L/C requirement

According to a statement issued by the National Tea and Coffee Development Board, Nepal's exporters can now export coffee up to a value of US$30,000.

Other incentives introduced by Nepal in what are known locally as the coffee directives, include a five-year tax holiday for coffee producers.

Production boost

Nepalese officials say that since work on the coffee directives began, production of coffee and tea has increased by 12 and 10 per cent respectively over the last year.

Amongst other measures underway in the coffee directives are the development of branding and the international registration of logos for Nepalese coffee.

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