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Despite of the high rate of the orthodox tea, the net margin is still below the satisfactory level. Thus, the present research was conducted to estimate the cost and production efficiency of orthodox tea in Ilam district of Nepal. A total of 160 samples were collected, 80 each from organic and conventional tea growing area of Deumai rural municipality, Ilam municipality and two wards of Suryodaya municipality. Similarly, 4 tea processing factories and 5 local traders were selected purposely. The B:C ratio of conventional orthodox tea farming (2.76) was significantly higher organic orthodox tea production (2.07). With 1 percent increase in fertilizer and manure cost would significantly decrease (p<0.05) the revenue from orthodox tea by 0.07 percent keeping another factor constant. Similarly, organic orthodox tea over conventional orthodox tea farming, the revenue will significantly decrease (p<0.01) by 47 percent other factors remaining constant the result indicate that with respect to fertilizer and labor it was found that increase in fertilizer and manure cost would decrease the revenue from orthodox tea.