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🇳🇵 Nepal /Economy & Trade

Nepal earns record Rs12 billion from large cardamom exports

From Kathmandu Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • Nepal's large cardamom exports reached a record value of Rs12.01 billion in the first 11 months of the current fiscal year.
  • Despite lower export volumes than some previous years, sustained demand and stable prices, particularly from India, drove the earnings to an all-time high.
  • While export earnings are strong, producers face challenges with low productivity compared to international standards, and historical price volatility remains a concern.

Nepal has achieved a historic milestone in large cardamom exports, reaching a record value of Rs12.01 billion in the first 11 months of the current fiscal year ending mid-June. This surge in earnings, despite export volumes not reaching previous peaks, is attributed to tighter global supplies, stable prices, and consistent demand from South Asian and Middle Eastern markets.

This is the highest export value ever recorded.

— Dipak NepalDipak Nepal, president of the Federation of Large Cardamom Entrepreneurs Nepal, commented on the record export earnings.

India remains the primary destination, absorbing approximately 99 percent of Nepal's large cardamom exports. From India, the spice is often re-exported to Pakistan and the Middle East, where Nepali cardamom commands premium prices due to its distinctive flavor and quality. Pakistani buyers, in particular, are significant importers, utilizing the spice in dishes like biryani and during religious festivals.

Dipak Nepal, president of the Federation of Large Cardamom Entrepreneurs Nepal, highlighted the achievement, stating, "This is the highest export value ever recorded." He noted that stronger prices, which remained stable around Rs2,500 per kg this year, encouraged farmers to sell their produce rather than hoard it. This stability contrasted with previous years' price fluctuations, boosting farmer confidence.

The export quantity has not been exceptionally high, but stronger prices have pushed earnings to a record level.

— Dipak NepalDipak Nepal explained the factors contributing to the record export value.

However, challenges persist for producers. Nepal's average large cardamom productivity stands at a significantly lower 531.31 kg per hectare compared to India's approximately 2,000 kg per hectare. Historically, farmers have grappled with price volatility, with prices fluctuating dramatically over the years. Despite the current export boom, ensuring consistent productivity and managing price risks remain key concerns for the sector.

Unlike previous years, prices did not fluctuate significantly. Because farmers were confident about the market, most of the produce entered the trading system without being hoarded.

— Dipak NepalDipak Nepal described the stable market conditions that encouraged farmers to sell their produce.
DistantNews Editorial

Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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