Although history points to the Indian subcontinent as the spice trade hub, today, one of cardamom’s strongest possibilities lies in Nepal’s eastern hills. The high-altitude villages of Taplejung, Ilam, Panchthar, and Sankhuwasabha nurture large cardamom, locally known as ‘alaichi’.
More than just a crop, it is Nepal’s “black gold”, guiding rural economies and shaping local identities.
Spices were once a prized currency before supermarkets turned them into ordinary, price-affordable kitchen staples. Spice was power when colonial conquest was at its height.
European empires explored far and wide across oceans and continents to secure control over spice-producing regions, inevitably shaping global trade networks of modern times. Among these sought-after treasures was cardamom—a spice that, though subtler than black pepper or clove, carried prestige, medicinal worth, and economic hope.
The spice crosses borders, but most of its profits do not. This single-market dependency leaves farmers vulnerable.
As the world’s largest producer of large cardamom, Nepal contributes to 68% of global output. Nearly 67,000 smallholder farmers grow cardamom on terraced hillsides, stretching from 700 to 2,100 m above sea level. In 2020, the nation had over 18,700 hectares of land under cardamom cultivation, with approximately 16,500 hectares deemed productive.
Large cardamom thrives here due to geographical factors. The eastern hills provide the optimum balance of mist, shade, and cool humidity needed for the plant to grow.
Farmers have mastered the system of intercropping cardamom with forest trees, creating a layered ecosystem that benefits soil health and biodiversity. The traditional method of drying the harvested pods in bhattis, wood-fired ovens, gives our cardamom a smoky flavour that makes it stand out in foreign markets.
Recent developments in pricing
In the fiscal year 2022/23, Nepal exported roughly 10,000 metric tonnes of large cardamom, generating a record USD 63 million in revenue. This marked a 72% increase compared to the previous year, showing a growing global appetite and the spice’s potential as a rural development contributor. Only yarn and carpet surpassed it in terms of export earnings—placing cardamom third among Nepal’s top exported products.
However, the story doesn’t simply end at the farm or exports. The status of where Nepalese cardamom goes and how it gets there reveals an overlooked economic dynamic. Approximately 95% of Nepal’s cardamom exports go directly to India, where the spice is reprocessed, packaged, and re-exported to destinations like Pakistan, the UAE, and Saudi Arabia.
Cardamom is the most valuable high-value agricultural export. In the fiscal year 2022/23, Nepal exported roughly 10,000 metric tonnes of large cardamom, generating a record USD 63 million in revenue.
Yes, this trade pattern has ensured consistent demand, but it immensely limits Nepal’s ability to capture the full value of its product. The spice crosses borders, but most of its profits do not. This single market dependency leaves farmers vulnerable. Market price in India directly affects our producers.
Over the years, many instances of severe market rate fluctuations led to the selling of entire harvests below cost. The spice has a high benefit-cost ratio estimated at 2.74:1; for every 1 rupee a farmer invests in farming, they earn 2.74 rupees in return.
However, it is of no help when market access is limited or under monopolistic pressure. Producers bear the risks but gain only partial rewards; this disparity serves as a reminder of the very colonial trade systems that cardamom once traversed.
Challenges in the global market
The concerns about cardamom stability intensify under the pressure of climate change. Farmers in eastern Nepal report an increase in fungal diseases, erratic rainfall, and pest outbreaks—all of which threaten yield.
Despite the rise in global demand, the growing pattern of adverse weather and disease has contributed to a 25% decline in production lately. The irony here is sharp: just when Nepal could profit more from cardamom, the climate crisis is testing its ability to grow it.
To make matters worse, the global market is shifting. Countries like Guatemala, China, and Vietnam have entered the market, often selling products that visually mimic the Nepali variety but lack its aroma and flavour. Moreover, Bangladesh imposing tariffs as high as 90% makes direct exports expensive and cost inefficient.
The road ahead for Nepal’s ‘black gold’
All is not bleak — at least not yet. Nepal is taking strategic steps to reclaim ownership over its cardamom. In 2016, the ‘Everest Big Cardamom’ trademark was introduced to ensure product identity and quality assurance.
Branding efforts like this are crucial in a saturated spice market. At grassroots levels, local cooperatives and export firms are exploring ways to move up the value chain by producing product variations, such as cardamom oil, oleoresins, essential oil, and infused products that can get profit several times more than raw pods.
Likewise, there are efforts ongoing to diversify the export consumer landscape. Europe and the Middle East present probable markets, especially for organic, ethically sourced spices.
However, the infrastructure and logistical struggles, particularly in certification and quality control, continue to remain a challenge. Better cold storage, road access, and customs facilitation could improve this state significantly.
For the villagers in Taplejung or the cooperative workers in Ilam, cardamom is not just income; it’s dignity, necessity, and possibility.
When tradition meets strategy, cardamom offers the possibility of what Nepal’s agriculture can achieve. In actuality, the value propositions are not limited to the harvest alone; they also extend to the way it is positioned, traded, and processed. For the villagers in Taplejung or the cooperative workers in Ilam, cardamom is not just income; it’s dignity, necessity, and possibility.
As the world learns more about the origin of flavours, our hills emerge for both their rich aroma and untapped potential. Perhaps the very pods that once went through imperial trade routes now carry the future of a sovereign, sustainable, and self-reliant spice trade.
Sudipa Mahato is a junior editor with Nepal Connect.
