With exports almost doubled, large cardamom has topped the list of items among Nepal’s good exportable products this fiscal year.
According to the trade statistics of the Department of Customs, cardamom exports have reached around Rs. 6.7 billion during the first 11 months of the current fiscal year. This is 93.7 per cent higher than the export of the same period last year.
Cardamom worth Rs. 3.46 billion was exported during the first 11 months of the last fiscal year.
In the current fiscal year, cardamom export from Nepal is the third highest after soybean oil and yarns. However, cardamom occupies first place among the agricultural 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. Large cardamom occupies an important place in Nepal’s 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. Nepali cardamom has found a market due to the decline in Indian production, said Raj Kumar Karki, president of Federation of Large Cardamom Entrepreneurs of Nepal.
He said that the price of cardamom produced in Nepal has also increased due to shortage of cardamom in the Indian market that contributed to increased export as well. He said that the export has increased even after cardamom was kept as an essential commodity during the prohibitory order.
“There was no problem of loading even during the prohibitory order. This year, transaction of cardamom has been better than expected,” he said.
“Cardamom is still being loaded for export. About 7 to 10 per cent of the total production in the country is still in stock. Cardamom worth additional Rs. 500 million will be exported,” he said.
Farmers have been selling a kilogram of cardamom at Rs. 750-800 based on quality at present which was limited to Rs. 600 a kilo last fiscal year. The production cost of one kilogram of cardamom is about Rs. 500.
Karki 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, cardamom has not been kept in stock like last year thanks to offer of reasonable rate.
“Due to increased price, we have exported the cardamom which was in stock last year,” he said.
“After about five years, prices have started rising again. We think that the price of cardamom will not drop significantly in the coming days and farmers will not face losses,” he said.
He said that the production of cardamom had increased by 20 per cent this year. Around 6,000 tonnes of cardamom has been produced in the country this year while around 5,000 tonnes of cardamom was produced last year, he said.
He, however, said that cardamom production is expected to decrease in coming harvesting season due to lack of rains.
Cardamom production has failed to increase as expected even though the way has been opened for farmers and businessmen to earn good income due to the rise in prices.
Production is declining not only in Nepal but also in India in proportion to the area under cultivation, he said.
Cardamom is commercially farmed in 43 districts, where around 16,000 hectares of land is under cultivation, he said.
Source : TRN,
