Decline in Production
The consortium of major large cardamom entrepreneurs in Nepal foresees a substantial dip in production this year, owing to adverse factors such as prolonged drought conditions and the onslaught of pest infestations. A preeminent association representing cardamom buyers also confirms the possibility of a staggering 40% annual reduction in output.
Factors Affecting Production
Mr. Nirmal Bhattarai, President of the Greater Cardamom Entrepreneurs Association of Nepal, expounds upon the grave concerns arising from the prevailing drought and the resurgence of disease outbreaks, both of which threaten to impair this year’s large cardamom yield. Simultaneously, the price of sizable cardamom is experiencing an upward trajectory. Mr. Bhattarai notes that in the upcoming months, a positive flow of demand is foreseeable as manufacturers liquidate their stockpiles. However, the sobering reality looms that meeting the requisites of international buyers might prove challenging this year. Presently, large cardamom with prominent seeds fetches USD 11,24 per kg. Nepal’s yearly production of substantial cardamom stands at 8,000 metric tonnes, cultivated across 53 districts. Among them, Taplejung emerges as the principal producer, but this year, it is expected to witness a significant 60% decline in output, primarily due to the encroachment of pests in the hilly terrain.
Solutions and Harvesting Season
To counteract the pest-related predicaments, Mr. Balamani Baral, President of Taplejung, underscores the imperative of raising awareness amongst farmers regarding the judicious application of organic pesticides. Organic insecticides derived from mugwort (bitter leaf) and cow dung represent viable sustainable alternatives to mitigate pest impacts. Conventionally, the harvest of substantial cardamom occurs between September and December.
Export and Challenges
Large cardamom prices soared to an unprecedented pinnacle, reaching USD 36,47 per kg during 2014-2015. Nepal predominantly exports large cardamom to India and Gulf countries such as Saudi Arabia, Qatar, and the UAE, with transit facilitated via Pakistan and India. The quantum of Nepal’s annual large cardamom exports amounts to approximately 35k metric tonnes. Nevertheless, the pursuit of a more ingenious and resilient agricultural framework becomes indispensable to sustain this flourishing trade. Large cardamom constitutes a noteworthy 4.81% of Nepal’s total exports; signifying 5.36k metric tonnes. Traders divulge that over 90% of Nepal’s substantial cardamom finds its way to India.
The discernible inclination of India to import unprocessed cardamom at relatively lower prices compels Nepal to export it in its raw form. Consequently, India subjects the spice to processing, packaging, and branding before commanding a premium price in the market.