Cardamom export increases

By Laxman Kafle,Kathmandu, Mar. 7: Even though the export trade has decreased significantly, large cardamom has topped the list of the good-income items among Nepali’s exportable products in the current fiscal year.

According to the trade statistics of the Department of Customs, the export of cardamom, one of the major exportable items, has reached around Rs. 4.89 billion during the first seven months of the current fiscal year.

This is 85.3 per cent higher than the same period last fiscal year.

Cardamom worth Rs. 2.64 billion exported during the first seven months of the last fiscal year. A total of 5,368 tonnes of cardamom worth Rs. 4.91 had been exported during the last fiscal year 2021/22.

In terms of quantity, the export of cardamom has doubled during the review period.

About 3,000 tonnes of cardamom were exported in the first seven months of the last fiscal year, while in the same period of the current fiscal year, about 6,118 tonnes were exported. In the current fiscal year, cardamom export from Nepal occupied sixth position.

Palm oil, soybean oil, yarns, woolen carpet and iron and steel products occupied first, second, third, fourth and fifth position during the review period.

During the review period, palm oil worth Rs. 13.92 billion, soybean oil worth Rs. 8.27 billion, yarns worth Rs. 6.87 billion, woolen carpet worth Rs. 6.45 billion and iron and steel products worth Rs. 5.46 billion exported during the review period.

The overall export of the country has decreased by 29.03 per cent to Rs. 93.43 billion during the first seven months of the current fiscal year.

However, cardamom occupies first place among the agricuwltural goods being exported from Nepal.

Large cardamom is exported to India and then to other countries. So there are huge possibilities and opportunities to be exploited by price. Large cardamom occupies an important place in Nepal's foreign export trade.

As the price of cardamom has gone up along with the increase in production, the trade has been better than expected, said traders.

“Increase in cardamom production and in its prices are the main reasons for improvement in cardamom exports in the current fiscal year,” said Nirmal Bhattarai, President of the Federation of Large Cardamom Traders of Nepal.

The cardamom production has increased by 35 per cent to 7,000 tonnes in the current fiscal year compared to last fiscal year, he said. 

About 5,200 tonnes of cardamom were produced in the last fiscal year 2021/22.

According to him, cardamom export is expected to reach in line with the position of two years ago in the current fiscal year.

Two years ago, around 8,842 tonnes of cardamom worth Rs. 7.01 billion was exported in the fiscal year 2020/21 that was the highest-ever export.

Similarly, a total of 3,170 tonnes of cardamom worth Rs. 2.53 billion were exported during the fiscal year 2019/20.

Generally, farmers sell cardamom when the price rises and store it when the price falls.

Farmers have been selling a kilogram of cardamom at Rs. 900-1,000 based on quality at present which was limited to Rs. 800 a kilo last fiscal year.

Bhattarai said that the price of cardamom produced in Nepal has gone up with the increase in demand for cardamom in India. Due to this, the farmers affiliated to this sector are happy, he told The Rising Nepal.

As most of the cardamom produced in Nepal is exported to India, the price will fluctuate according to the Indian market.

According to him, Nepal will get more income if cardamom is exported with value addition. “We can add value by 20-30 per cent in cardamom export,” he said.

According to him, cardamom has not been kept in stock like last year due to get reasonable rate.

“Due to increased prices, we have exported the cardamom which was in stock last year,” he said.

Cardamom is commercially farmed in 53 districts, where around 18,500 hectares of land is under cultivation, he said. Out of it, production has started from 15,000 hectares of land.

Taplejung district occupies the first position in producing cardamom while Sankhuwasabha is the second highest producer. Taplejung, Sankhuwasabha and Panchthar districts account for more than 50 per cent of the country's total cardamom production, Bhattarai said.

Bhattarai, however, said that the production of cardamom did not increase in line with the expansion of the farming areas due to various diseases and lack of availability of agricultural inputs required for the cardamom farming.

He said that the farmers are encouraged to be involved in the cardamom farming as this crop gives better returns better than other cash crops and help uplift the living standard of the rural people.

Stating that the traders were facing difficulties to export cardamom in the third countries due to hindrances posed by the export procedure, he said that government’s support was needed to export cardamom to other countries, except India.

"Dependent only on India for the sale of cardamom has become a major problem for the traders and farmers to get more prices. If we rely on only one country for export, the demand for cardamom will be low and we will not be able to bargain in price," he said.