Cardamom revenue peaks at Rs. 12.64B

Kathmandu, July 27: The country has achieved a historic landmark in cardamom exports, with earnings surpassing Rs. 12 billion for the first time during the fiscal year 2025/26.

According to the annual trade statistics released by the Department of Customs, the country exported cardamom worth Rs. 12.64 billion during the last fiscal year, marking the highest export value ever recorded for the commodity.

The export value increased by 64.58 per cent compared to the previous fiscal year, when Nepal exported cardamom worth Rs. 7.68 billion.

The growth was also reflected in export volume. Nepal exported 6,395 tonnes of cardamom during the review year, up from 4,301 tonnes in fiscal year 2024/25.

The latest figures have surpassed the previous record set in fiscal year 2022/23, when cardamom exports had reached around Rs. 8.27 billion despite a significantly higher export volume of 9,990 tonnes. 

The higher earnings this year indicate improved international prices for the spice.

Cardamom exports had declined in the following two years, falling to Rs. 7.94 billion in fiscal year 2023/24 and further to Rs. 7.68 billion in 2024/25.

Cardamom accounted for 4 per cent of Nepal's total exports during the last fiscal year. The country recorded a historic Rs. 315 billion in total exports during the fiscal year.

In fiscal year 2024/25, cardamom accounted for 2.75 per cent of Nepal's total exports, which stood at Rs. 277 billion.

"Large cardamom is one of Nepal's major cash crops and a key export commodity. The latest export performance is expected to strengthen farmers' incomes and contribute positively to the country's overall export earnings," said Deepak Nepal, president of the Federation of Large Cardamom Entrepreneurs of Nepal.

According to him, the record earnings were largely driven by a sharp rise in prices rather than export volume alone.

He said farmers sold cardamom at Rs. 2,400 to Rs. 2,700 per kg from the beginning of the harvesting season in August, while prices climbed to Rs. 2,800 per kg during the peak harvesting months of November and December.

According to him, this is the highest price farmers have received in the past decade. The all-time record price, however, was recorded in 2010, when cardamom fetched Rs. 120,000 per man (around Rs. 3,000 per kg).

The attractive prices have encouraged farmers to expand cultivation, he said, adding that more than 90 per cent of export earnings ultimately reach farmers because exporters operate on relatively small profit margins.

He said farmers and traders had already sold most of their stocks because of favourable prices and expected very little carryover stock into the current season.

Productivity remains below potential

Despite the record export earnings, productivity remains below potential.

Nepal said cardamom production has not increased in proportion to the expansion of cultivation areas because of disease outbreaks and inadequate access to quality agricultural inputs.

"We estimate that cardamom production in Nepal has increased by around 20 per cent compared to last year," he said. The country is expected to produce about 6,500 tonnes of cardamom this year, up from 5,200 tonnes last year. Production is projected to increase by another 20 to 25 per cent in the next production season.

According to him, Nepal has the potential to produce at least 10,000 tonnes of cardamom annually, considering that the crop is cultivated on around 20,000 hectares across 52 districts. 

However, annual production has remained between 5,000 and 7,000 tonnes.

Production has started on about 18,000 hectares, but yields have remained low because of diseases and the lack of essential agricultural inputs, he said.

The large cardamom is grown predominantly in Eastern Nepal where four districts Taplejung, Sankhuwasabha, Panchthar and Ilam account for more than 80 per cent of national production.

Taplejung district occupies the first position in producing cardamom while Sankhuwasabha is the second highest producer. Taplejung holds 44 per cent and Sankhuwasabha 22 per cent of the country’s total cardamom production.

He urged the government to prioritise the sector by providing concessional loans and technical support to farmers.

"If the government prioritises the sector and encourages farmers by providing concessional loans and technical support, annual production could reach 10,000 tonnes, and export earnings could double," he said.

He also stressed the need for improved storage facilities, saying many farmers are forced to sell their produce immediately after harvest, even when prices are low.

Price fluctuations in the domestic market largely depend on production levels in Nepal, India and Bhutan. However, Nepal accounts for nearly 60 per cent of global large cardamom production, while India is the largest consumer of the spice, he said.

"Improving storage capacity would help stabilise prices and enable farmers to earn higher returns," he said.