Cardamom prices hit decade-high

The price of cardamom has hit a decade-high in Nepal’s eastern hilly districts, surpassing Rs 100,000 per 40 kg.  

Cardamom is sold in three grades. Traders report that high-quality cardamom is priced at Rs 105,000, scissor-cut (tail-removed) cardamom at Rs 101,000, and regular cardamom at Rs 98,000 per 40 kg.  

“This year, cardamom has reached its highest price in the last decade,” said Deepak Nepal, a cardamom trader and central member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). “Prices could rise even further.”  

The price last peaked at Rs 105,000 per 40 kg in 2014, followed by a steady decline. Recovery began last year, with prices around Rs 82,000 per 40 kg.  

Nirmal Bhattarai, central president of the Cardamom Traders’ Association, predicts a record-breaking year. “Prices are continuously increasing,” Bhattarai said. “This rise is likely due to reduced production, despite strong international demand.”  

The highest price on record was in 2010, when cardamom briefly sold for Rs 120,000 per 40 kg.  

According to the Mechi Customs Office, 783.75 metric tons of cardamom were exported in the first three months of the current fiscal year (2023-24), significantly lower than the previous year. Harvesting begins in July and concludes by early December.  

For farmers in Nepal’s hilly regions, cardamom is a vital income source. It is cultivated in 42 districts, with significant production in Panchthar, Taplejung, Ilam, Sankhuwasabha, Khotang, Bhojpur, and Tehrathum in Koshi Province.  

However, production has declined. In Koshi Province, output dropped from 7,763.87 metric tons in the 2022-23 fiscal year to 7,582.02 metric tons in 2023-24. The current year’s data is pending, but estimates suggest a 20 percent reduction.  

“Production has fallen sharply due to pests, diseases, and landslides,” said agricultural technician Keshar Bahadur Magar from Panchthar. “This year’s harvest will likely be much lower than in previous years.”