Ijramt V5 I8 5
Ijramt V5 I8 5
Abstract: Large Cardamom (Ammomum Subulatum) is a high of Nepalese traders on Indian market for large cardamom export
value crop of Nepal, contributing to 13 percent of its export value. due to which Nepalese traders has to face various problems like
About 95 percent of the domestic produce of large cardamom is
low pricing, low bargaining power,etc (Acharya et al., 2020).
exported to India. This study, conducted during 2023-2024,
engaged stakeholders through workshops, conferences, and So, with an aim to reach higher value niche market, in 2014,
comprehensive reviews of Nepalese large cardamom production Trade and Export Promotion Centre (TEPC), in collaboration
and trade dynamics. Currently heavily reliant on the Indian with the Federation of Large Cardamom Entrepreneurs of
market, Nepalese farmers face significant price volatility and Nepal (FLCEN) and other major trading groups, established a
limited bargaining power. Key barriers include high tariffs, collective trademark for large cardamom named 'Everest Big
regional trade dynamics, inadequate market research, weak
Cardamom' and registered it with the Department of Industry.
policies, and regulatory gaps. To address these issues, the study
recommends strategic actions such as trademark registration in This collective trademark was meant to be registered in
export markets, comprehensive market feasibility studies in international markets such as India, Bangladesh and Dubai.
Middle Eastern countries, adoption of quality standards (GAPs However, it has not registered in any countries except in
and GMPs), intensified promotional efforts, and bilateral Pakistan and the trademark has not been able to create the
negotiations for trade facilitation. Implementing these strategies expected change in cardamom export (Acharya et al., 2020).
aims to diversify export destinations, improve product quality,
In this context, this paper assesses the present sitution,
and strengthen market presence, ultimately fostering sustainable
growth in Nepal’s large cardamom sub-sector. bottlenecks, opportunities and national/international trade
policies related to large cardamom and recommend a way
Keywords: Large Cardamom, Trade, Nepal. forward related to issues and opportunities of international trade
of large cardamom.
1. Introduction
Large Cardamom (Amomum subulatum) is a perennial 2. Methodology
herbaceous plant of family Zingiberace, very popular in the Both qualitative and quantitative information were gathered
world as Black Cardamom, Black Gold and Queen of Spices. and analyzed to assess the present status and trade opportunities
In Nepal, it is mostly cultivated in Eastern Nepal mostly of Nepalese large cardamom. Primary information was
concentrated in Taplejung, Sankhuwasabha and Panchthar collected via inception meeting with Sahaj team at Biratnagar,
district (MoALD, 2020). Among sixteen varieties of cardamom Ministry of Agriculture, Koshi Province and Federation of
available in world, five types of cardamom cultivated in Nepal Large Cardamom Association Nepal (FLAN) at Birtamod,
includes: Ramsey, Golsey, Sawney, Chibsey, and Dammersey Jhapa. Key informant interview (KII) was conducted to large
(Kattel et al., 2020). It is also one of the high value crops having cardamom collectors and exporters to assess present status,
highest export value in terms of foreign currency earning bottlenecks, and opportunities, and national/international trade
(Sharma et al., 2016). According to MoALD (2020), large polices related to large cardamom. Kick up workshop with
cardamom contributes 13% of the total country export value. concerned stakeholders in Koshi Province and Kathmandu in
Studies shows that the produced cardamom are collected by 2023-2024 and about more than 70 policy makers, government
traders at village level, district level, road head traders and authorities, traders, input suppliers, associations and media
ultimately to Birtamod traders. From Birtamod, only 10% is were actively participated including 14 Provincial Assembly
consumed in domestic market while 90% of the cardamom is Members representing cardamom growing districts of Koshi
exported to India (Kattel et al., 2020). While only a minor share Province and Secretory from Ministry of Industry, Agriculture
of cardamom exported to Bangladesh, Pakistan and the UAE and Cooperative (MoIAC), Government of the Koshi Province
directly through Nepali traders. Indian traders imports the to explore and inform various opportunities and challenges in
cardamom and re-export it to other countries like Pakistan and large cardamom trade (international trade). The provincial level
Bangladesh thus making a considerable benefits (Acharya et al., workshop was organized by FLCEN in collaboration with
2020; Kattel et al., 2020). This has created a market dependency Sajah-NAMDP Phase II. In addition, secondary information
related to large cardamom present status, opportunities and productivity of Large Cardamom was 16 ha, 8 MT and 0.50
challenges related to production and trade were reviewed from MT/ha, respectively in Sudurpaschim Province (MoALD,
varies published materials from MoALD, policies documents, 2023). Koshi Province contributes 87.8 percent followed by
Agriculture Development Strategy (ADS) and Provincial-ADS, Gandaki Province (6.5%) and Bagmati Province (4.5%) to the
Koshi Province. national production in 2021/22.
The Agriculture Development Strategy (2015-2035) has Fig. 2. Production trend of large cardamom in Koshi Province and Nepal
identified and prioritized large cardamom as the 5th sub-sector within 16 years
among fifteen identified sub-sectors for agribusiness B. Large Cardamom Area, Production and Yield in Koshi
development through the value chain approach in Nepal Province
(MoAD, 2014). The area, production and productivity of large
Large cardamom is an economically important low volume
cardamom in Nepal was 15975 ha, 8714 MT and 0.54 MT/ha,
high-value crop due to which, most of the farmers in Koshi
respectively. The area, production and productivity of large
province have shifted to the large cardamom cultivation.
cardamom was 13904 ha, 7644 MT and 0.51 MT/ha
Compared to the traditional crops, the income from large
respectively in Koshi province. The area, production and
cardamom is three to four times higher (SNV, 2010) The
productivity of Large Cardamom was 712 ha, 391 MT and 0.55
International Centre for Integrated Mountain Development
MT/ha, respectively in Bagmati province. The area, production
(ICIMOD, 2016) reported that, over 21960 households are
and productivity of Large Cardamom was 1054 ha, 541 MT and
engaged in large cardamom farming in Nepal. At present, Nepal
0.51 MT/ha, respectively in Gandaki province. The area,
is the largest producer of large cardamom with a 68 percent
production and productivity of Large Cardamom was 712 ha,
share in the global market, followed by India (22%) and Bhutan
391 MT and 0.55 MT/ha, respectively in Bagmati province. The
(9%). The area contribution of Large Cardamom in Koshi
area, production and productivity of Large Cardamom was
Province to the nation is 90.9%, where the contribution on
1054 ha, 541 MT and 0.51 MT/ha, respectively in Gandaki
national production is 90.8%. Large cardamom has been a
Province. The area production and productivity of Large
prioritized crop by Nepal Trade Integration Strategy (NTIS)
Cardamom was 204 ha, 74 MT and 0.36 MT/ha respectively in
and Agriculture Development Strategy (ADS, 2015-2035). All
Lumbini province. The area, production and productivity of
the parameters of production status (area, production, and
Large Cardamom was 85 ha, 56 MT and 0.66 MT/ha
productivity) are found increasing in the national context
respectively in Karnali Province. The area, production and
supported by ITC (2017). In 2005/06 the area, production and
Kattel et al. International Journal of Recent Advances in Multidisciplinary Topics, VOL. 5, NO. 8, AUGUST 2024 29
productivity of Large Cardamom in Nepal was 11498 ha, 6646 area has been increased by 106.66 ha per year whereas
Mt and 0.578 Mt/ha, respectively whereas the area, production production increased by 2.29 Mt/year. Koshi province
and productivity of ginger in Koshi province was 11238 ha, contributes 87.04% total area and 87.73% production in the
6505 Mt and 0.579 Mt/ha, respectively. In 2020/21 potential nation. Annual yield of large cardamom in Koshi Province has
districts of large cardamom production in Nepal are Taplejung, been decreased by 4.2 kg/ha on an average within 16 years
Panchther, Sankhuwasava, and Terathum districts. (Figure 5).
Table 3
Area and production of large cardamom among Koshi province districts in
2021/22
District Area (ha) Production (Mt)
Taplejung 4,272 2,851
Sankhuwasava 2,128 968
Solukhumbu 150 110
Panchthar 3,164 1,476
Ilam 1,671 869
Terathum 611 292
Dhankuta 118 50
Bhojpur 599 360
Khotang 1,064 585
Okhaldhuna 31 21
Udhayapur 38 26
Jhapa 2 1
Morang 43 27 Fig. 5. Yield trend of large cardamom in Koshi province
Sunsari 13 9
Total in Koshi 13,904 7,645 C. Expert Scenario, Market Standard and Price of Large
Total in Nepal 15975 8714 Cardamom in Nepal
Source: MoALD (2023)
The export price was found lower than the prevailing rate of
large cardamom in Birtamod market. Exporters have to prepare
lower invoices according to advice of transporter and the
importing party to avoid 4.5% state movement tax to be paid in
value of consignment. (ITC, 2017; Joshi & Piya, 2019). There
is also a malpractice of mixing Nepali produce with cheap
import from China and Guatemala (ITC, 2017). Annual export
quantity of large cardamom from Nepal has been increased by
28.36 MT per hectare (Figure 6).
Birtamod to Karachi via road through Wagah-3000 km,
Birtamod to Karachi via sea through Kolkata-5000 km, India
does not allow Nepalese to export through Wagah. (Acharya, et
al., 2020). Bangladesh which is the major market of Bhutanese
large cardamom has substantially waived tariffs for Bhutanese
Fig. 3. Yield of large cardamom in 14 districts of Koshi Province and imports whereas the customs tariff for Nepalese cardamom is
Nepal more than 54 percent. (ITC, 2017). India has waived all types
of tax on the movement of Bhutanese products through territory
of India whereas Nepalese counterparts should pay 4.5% state
movement tax on value. (ITC, 2017). Due to such ad valorem
tax, Nepalese traders should have to prepare low invoices to
reduce tax which reduces the insurance amount. (ITC, 2017).
India exports less than what it imports. India is the world's
largest consumer of spices and thus India itself is the major
market for Nepalese cardamom. Afganistan, Pakistan, UAE,
UK and USA respectively are the top importers of large
cardamom from India in year 2019/20 with Afganistan
importing large cardamom from India. However, the import
value of Pakistan is higher than Afganistan (Indian Spices
Board, 2020). The demand for cardamom in Middle East
countries is mainly of green cardamom (MoAF, 2017). The
Fig. 4. Trends of area and production of large cardamom in Koshi
export quality and value of large cardamom is highly fluctuated
province over 16 years
and in declining trend and about more than 95% Nepalese large
Figure 4 shows the positive trends of large cardamom area cardamom is being exported in India. In fiscal year 2022, total
and production in Koshi province over 16 years. The productive export quantity of large cardamom is 9931 Mt with monetary
Kattel et al. International Journal of Recent Advances in Multidisciplinary Topics, VOL. 5, NO. 8, AUGUST 2024 30
value of NRs. 8 Arab 24 crore and fifteen lakhs (8241.5 million locally called Chalan Chalti (CC). This segregation is made on
NRs.) which was about 50% lower value in 2021 (NRs. 4764.38 the base of its Size, Colour and tail cutting (ITC, 2017).
million). Due to high stock holding the export volume in 2022 Following Table 5 shows the various quality measurements in
was higher than national production fetching good price (NRs. large cardamom.
850- 1875/kg) as compared to previous years (NRs. 625-
1000/kg) (refer Table 4).
Table 4
Trend of large cardamom export volume and value from Nepal
Year Exported Quantity (Mt.) Export Value (NRs.)
2012 5523 3,632,474,412
2013 5321 2,319,134,045
2014 3523 3,254,166,036
2015 3217 4,717,223,752
2016 3006 3,888,374,024
2017 4656 4,503,910,808
2018 4329 3,826,983,423
2019 3358 2,718,022,124
2020 8566 6,895,422,480
2021 5280 4,764,389,360
2022 9931 8,241,513,469
Fig. 8. Price of large cardamom in Birtamod, Jhapa based on grades in 1
Sources: TEPC (Official Website); FLCEN data source December 2023 (Source: FLCEN (1st Dec. 2023); 1 man = 40 kg)
Table 6
Stakeholders, category, objectives and major roles for large cardamom trade promotion in Nepal
Stakeholders Category Objectives Major roles/Activities
MoALD at federal level Government Develop national /provincial Formulate national cardamom policy, action plan to support
MoIAC at Provincial level cardamom policy and export strategy, increase financial support to R&D, branding and
institutional mechanism for product development
sector coordination
MoCIS Government Improve commercial diplomacy Support visits from governmental and private sectors
TEPC Government Develop export quality standard Adopt collective trademark for Black and Pink cardamom,
and new collective trademark benchmark analysis
DFTQC Government Improve certification services in International accreditation recognition of certified laboratories
MRL testing
Develop export quality standard Adopt collective trademark for Black and Pink cardamom,
and new collective trademark benchmark analysis
Cardamom Development Government Ensure quality and disease-free Support for development of private nurseries and disease-free
Centre (CDC) seedlings for farmers certification schemes, extensive training for quality farming,
disease minimization
Agriculture Knowledge Government Improve productivity of Training of farmers and technicians, establishment of model
Centre (AKC), Orchards orchards in each district, awareness campaign, irrigation system
Agriculture Division of
Palikas Develop and disseminate Agriculture Knowledge Centre, Agriculture Division of Palikas
modern dryers, establishment of
storage facility
FLCEN Association/Private Adopt compulsory export Dissemination of grading system of FLCEN to farmers,
quality standards moisture, physical and chemical characteristics assessment,
benchmark analysis of competing cardamom, trace MRL
Develop exporter’s capacities Improve knowledge about international business practices,
develop new direct sales channel in traditional importing
markets, investigation of air freight, cardamom sales outlet in
major markets, product development and differentiation
Agriculture and Forestry Technical Teaching, Research and Research on diseases management, value chain analysis,
University, Other Government Extension production efficiency and international trade promotion, Climate
Universities in Nepal University resilience large cardamom farming teaching and extension
Table 7
Stakeholders involve large cardamom sub-sector in Nepal
Territory Governmental Non-governmental Private sector
Central MoALD, MoICS, DoA, DFTQC), TEPC, MoF/DoC, AKC, ICIMOD, UNNATI, ITC, ANSAB, FNCCI, FLCEN
CDC, PPD, CCD, NSCDP, AIC, AEC and Spice crop Swisscontact/NAMDP Phase II,
development sectors of NARC, PMAMP Mercy Corps
Province Provincial government, Ministry of Land Management NAMDP Phase II FNCCI, FLCEN
Agriculture and Cooperative (MoLMAC)/Agriculture, DoA,
PMAMP
District/regional Agriculture Knowledge Centre (AKC), Customs Office, NGOs, COs FLCEN, CCI
Plant Quarantine Office
Local Rural Municipality, Municipality (Palikas) Agricultural cooperatives, Agro-vets, Micro-financial
farmers cooperatives etc. institutions, credit
cooperatives, savings,
Farmers
Entrepreneurs of Nepal (FLCEN), Federation of Chamber of
Commerce and Industry (FNCCI), nursery growers, individuals
(local traders), Agro-vets, infrastructures, rules, policy and
Pocket package system and Mercy Corps. The above
description can be put into the following Table 6.
E. International Trade of Nepalese Large Cardamom
Most of the cardamom produced in Nepal is collected in
Birtamod. More than half of the trade volume was shipped to
India's Siliguri, and the other half was shipped to Delhi and
Kolkata. In the Eastern Himalayan region, particularly Nepal,
India's Sikkim, and Bhutan, Siliguri is regarded the key regional
hub for large cardamom. Nepalese large cardamom is being Fig. 9. Flow of Nepalese large cardamom in international market
export to Pakistan and Middle Fast Countries via Dubai from
Mumbai and major market hubs of India (Figure 9). The current monopoly of Indian traders, as well as the lack
of direct contacts with ultimate purchasers, limit Nepali traders'
capacity to react quickly. Prices are typically set by purchasers
at the Delhi market, with following prices set by other traders
at the central, wholesale, district, and village market centers.
Kattel et al. International Journal of Recent Advances in Multidisciplinary Topics, VOL. 5, NO. 8, AUGUST 2024 32
Table 8
Status of Nepalese large cardamom in international markets: problems with possible solutions
Countries Indian market of Nepalese Other countries from India Problems Solutions
cardamom
India More than 90% export Via Mumbai: Lack of own Testing Lab (Depend International standard valid lab
Places: Delhi, Mumbai, Pakistan, Middle East Countries on Indian Lab in Kalkata and requires in Nepal and G-G
UP (Banaras, Kanpur, Via Bhutan: Bangladesh vehicle wait 5-6 days to take lab negotiation to Indian
Tarkhan) Amritsahar Delhi: via Dubai certificate) Government
Kalkata Pakistan Long waiting period in Kalkata Facilitation for Mumbai port
Kalkata and Bishaka (AP) Port port shipping (45-60 days) for large cardamom cargo
for Nepalese Large Cardamom - shipping (Direct)
--export to other countries from
India
Bangladesh Very few cardamom Via Bhutan to Bangladesh (0% 35% traffic for Nepalese and G-G to negotiation for 35%
tariffs for Bhutan) Indian large cardamom tariffs down
Pakistan About 45% Nepalese High Duty and Under value LC Full LC requires from Pakistan. G- Pakistan
cardamom goes to G negotiation required.
Pakistan via Dubai Direct Trade
through India Functional bilateral trade
agreement (collective trademark)
Middle East Via India to Dubai Low demand (1-5 Mt) per buyer Transport subsidy Middle East Countries
Countries Delay delivery (45-60 days from Via. Mumbai port for shipping (G- Other countries (EU, USA,
Kalkata port) G negotiation with India) Canada, etc.)
High transport cost (NRs. 50- Certification (organic, Faire Trade,
Other countries 80/kg in air cargo) GI)
(EU, USA, (NRs. 20-30 /kg in shipping GMP product
Canada, etc.) cargo)
Pricing for traders and farmers inside the country is dependent Nepal.
on the grading of large cardamom. Jumbo Jet (JJ), Standard • No access of Mumbai shipping port to export Nepalese
(SD), and Chalan Chalti (CC) are the three distinct price large cardamom to other countries.
categories for large cardamom. The pricing records per man (40 • Lack of transportation insurance services to export.
kg) that is currently available. In 2014/15, the average price at There are only two transporters who can manage safe
Ilam (Fikkal) for Jumbo Jet was US $ 27.64 per kg, US $ 25.13 transportation of goods to Delhi (ITC, 2017).
per kg for Standard, and US $ 24.62 per kg for Chalan Chalti • Limited governmental support at the sector level for
(ITC, 2017). trade development activities.
The majority of prominent cardamom exporters have • Informal costs in route to Delhi comes around INR 25
established relationships with Indian buyers. They have not yet per kg (ITC, 2017).
developed the capacity to bear the risks of exporting cardamom The trade in Nepalese large cardamom is monopolized by a
directly to Pakistan or other Middle Eastern markets. Their risk- small group of Delhi traders who keep Nepalese exporters in
taking potential is limited, owing to a lack of understanding of the dark about quality, pricing, business ties, and trends, and
Nepalese legislation, certification requirements, administrative who retaliate harshly if Nepalese exporters pursue direct
procedures, and export documentation requirements. Nepali contacts with either India or Pakistan. The benefits of Pakistan's
traders are limited to exporting to their typical Indian importers high prices primarily benefit Indian traders.
due to a lack of understanding about trade facilities and the Imports of ('duplicate') black cardamom from new origins, in
documentation required (ITC, 2017). which the same Indian traders are involved, are threatening this
Access to the market for Nepalese large cardamom in other long-standing economic model. This is a contradictory
countries is found low due to: condition that will cause Nepalese large cardamom exports to
• Indian Customs Office doesn’t recognize quarantine stagnate. The main trade barriers that large cardamom exporters
certificate by government lab of Nepal, total cost in confront are issues with conformity evaluation and procedural
certification in Kolkata costs 2 weeks and US$ 300 per barriers. The samples are sent to Kolkata, which is a long way
screening (Acharya et al., 2020). from the Customs post, for testing. Obtaining the report and
• Increasing unfair competition: ‘Duplicate' black clearing the items through Customs takes more than 14 days.
cardamom 1 is transported to Pakistan by Indian Even when test findings show no abnormalities, exporters
traffickers combined with Nepali large cardamom in complain that passing the shipment without making unofficial
order to lower the price. payments to Indian officials is tough (ITC, 2017). Detail status
• Lack of suitable provisions and G-G coordination in of Nepalese large cardamom trading in international markets,
bilateral agreements for market access to Pakistan and problems and possible solutions is presented in Table 8.
Bangladesh.
• Limited number of wholesalers and exporters in
1
Duplicate large cardamom is adulated with poor quality cardamom (size,
color and grade) mentioned in ITC (2017). There is also a malpractice of mixing
Nepali produce with cheap import from China and Guatemala (ITC, 2017).
Kattel et al. International Journal of Recent Advances in Multidisciplinary Topics, VOL. 5, NO. 8, AUGUST 2024 33