Cardamom export revenue surges by 17pc despite decline in export volume

February 13, 2025, 11:53:24 AM |

KATHMANDU: Nepal has witnessed a notable increase in revenue from cardamom exports during the first half of the current fiscal year 2024/25, despite a significant drop in export quantities. The rise in income is attributed to a sharp increase in cardamom prices compared to the previous year.

According to statistics from the Department of Customs , the quantity of cardamom exported during the first six months of this fiscal year decreased by 7% compared to the same period last year. Specifically, exports fell from 2,866 tonnes in the first half of the last fiscal year to 2,674 tonnes this year, marking a decline of approximately 192 tonnes .

However, in terms of value, cardamom exports surged by 17% during the review period. Nepal earned Rs. 4.56 billion from cardamom exports in the first six months of this fiscal year, compared to Rs. 3.90 billion during the same period last year.

Production Declines Amid Rising Prices

The decline in exports is primarily linked to a significant drop in cardamom production. Nirmal Bhattarai , President of the Large Cardamom Entrepreneurs’ Association of Nepal , stated that cardamom production has fallen by nearly 20% this year compared to last year. He attributed the decline to the adverse effects of climate change, which have impacted production for the past three years.

“Last year, production dropped by 50% compared to the previous fiscal year. This year, we expect only around 4,000 tonnes of cardamom to be produced, down from 5,000 tonnes last year and 9,000 tonnes three years ago,” Bhattarai said.

Currently, cardamom is cultivated on approximately 18,000 hectares of land across the country. However, declining yields have raised concerns among farmers and stakeholders.

Price Surge Boosts Farmer Incomes

Despite the challenges in production, the price of cardamom has increased significantly. Farmers are now selling cardamom at an average rate of Rs. 2,750 per kg , up from Rs. 2,250 per kg last fiscal year—a 25% increase . This price hike has helped offset the impact of reduced production, benefiting farmers and boosting export revenues.

Bhattarai explained that the fluctuation in cardamom prices is closely tied to production levels in Nepal, India, and Bhutan. “Production has also declined in India and Bhutan, leading to a global price surge. This presents an opportunity for Nepal to capitalize on higher prices if we can expand cultivation and increase production,” he added.

Key Statistics:

Export Quantity (First Half FY 2024/25): 2,674 tonnes (↓7% compared to last year)
Export Value (First Half FY 2024/25): Rs. 4.56 billion (↑17% compared to last year)
Average Price per Kg: Rs. 2,750 (↑25% compared to last year)
Production Decline: Nearly 20% this year; 50% last year
Expected Production (FY 2024/25): ~4,000 tonnes

Fiscal Nepal |

Thursday February 13, 2025, 11:53:24 AM |