Nepal’s large cardamom exports saw a 60 percent jump in the first five months of the current fiscal year due to a spike in the demand for—and value of—the commodity, traders said.

According to the Department of Customs, the country exported 2,622 tonnes of large cardamom worth Rs5.53 billion to India in the first five months of the current fiscal year ended mid-December compared to the same period last fiscal year.

With the rising demand for large cardamom in the past few years in West Asia and Gulf countries to prepare dishes like biryani and other meat items, Nepali farmers are getting good value for their produce.

“Currently, the bold quality is priced at Rs2,600 per kg, jumbo jet quality is being traded at Rs2,425 and ordinary quality at Rs2,350 per kg. Last year, large cardamom traded at Rs2,800 per kg,” said Deepak Nepal, president of the Federation of Large Cardamom Entrepreneurs of Nepal.

“We expect the price to grow further,” said Nepal.

The good value at the start of the harvest season also contributed to the rise in export, he said.

Nepal exported 4,301 tonnes of large cardamom worth Rs7.68 billion last fiscal year.

With the growing demand for large cardamom in the past four years with an increase in value, farmers have expanded their cultivation area to boost output.

According to the federation, large cardamom is currently planted in 18,000 hectares, including over a quarter of new acreage that will bring a yield within a year.

Nepal is the largest producer of large cardamom, accounting for 68 percent of the global output, followed by India and Bhutan.

The spice is grown in Sikkim, Darjeeling and Bhutan. Large cardamom was introduced in Ilam from Sikkim in 1865.

The major cardamom-producing districts in Nepal are Ilam, Panchthar, Taplejung, Sankhuwasabha, Tehrathum, Bhojpur, and Dhankuta. Lately cultivation has been expanded to Bagmati and Gandaki provinces too.

October-November is the peak harvest season.

India is the biggest buyer of Nepal’s large cardamom, absorbing 99 percent of its exports. The spice is re-exported to Pakistan and the Middle East, where it fetches high prices because of local preference for Nepali products.

Pakistan is the largest importer of large cardamom, purchasing roughly 60 percent of India’s large cardamom exports. The local Muslim community uses large cardamom pods in biryani, a popular Pakistani dish, as a symbol of prosperity and wealth.

Large cardamom traders and experts have long been urging the government to negotiate with Pakistan and Bangladesh to reduce heavy taxes on exporting one of the world’s most expensive spices. Nepal needs to diversify its products beyond India.

However, traders said that the government has not addressed their concern yet.

Bangladesh imposes 5 to 7 different duties on the spice, resulting in a total of 89 percent tariff.

Nepali traders have also been trying to export large quantities of cardamom to Bangladesh directly through the Kakarbhitta-Panitanki-Phulbari route, taking cue from the increased demand.

The 44-km route provides the shortest access to the Bangladeshi border point of Banglabandha for Nepal’s trade with and through Bangladesh.

Large cardamom traders said that nothing has been achieved on this issue as well, exposing them to the single Indian export market. Transit is another major problem hindering significant cardamom export.

Exporting large cardamom to Pakistan through India is difficult.

Large cardamom has three types depending on quality. The large cardamom grown in Nepal, known as Alaichi, is one of the country’s largest export crops. It is a high-value cash crop and a key income source for farmers in eastern Nepal's mountains and hills.

According to the Market Intelligence Series report published jointly by the Food and Agriculture Organization of the United Nations and Economic and Social Commission for Asia and the Pacific, Nepal holds the fifth position in the global production of cardamom and fourth among cardamom exporters in 2023.

Inadequate transport, a lack of processing infrastructure, lags in value-added production, poor market auction facilities, quality control issues, certification gaps, and regulatory bottlenecks in auction facilities remain major export constraints for Nepal’s cardamom, the report said.

Additionally, compliance with non-tariff measures is a more significant challenge than tariffs for Nepal’s cardamom exports which enjoy zero tariffs in major import markets.