Nepal’s large cardamom exports have hit an all-time high in value. In the first 11 months of the current fiscal year, ending in mid-June, the country shipped 6,034 tonnes worth about €69.3 million, according to customs data, the highest export value ever recorded for the spice even though the volume remains below levels seen in some earlier years.
The driver was price rather than quantity. Dipak Nepal, president of the Federation of Large Cardamom Entrepreneurs Nepal, called it a historic milestone, noting that the export quantity had not been exceptionally high but that stronger prices had pushed earnings to a record level. Prices held unusually steady this year at around €14.40 per kg, which encouraged farmers to sell their produce rather than hold stock waiting for higher rates. Tighter global supply and sustained demand from South Asian and Middle Eastern markets underpinned the gains.
Even so, Nepal captures only a fraction of the spice’s final value despite being the world’s largest exporter. India absorbs roughly 99 percent of exports and re-exports to Pakistan and the Gulf, where Nepali cardamom commands premium prices for its flavour and quality, and where retail rates in Qatar and the UAE can reach as high as about €866 per kg, the Trade and Export Promotion Centre notes. Prices have also been historically volatile, climbing from around €15.60 per kg in 2014 to a peak of about €17.30 in 2016 before crashing to roughly €4.90 in 2018 and bottoming near €4 in mid-2022. Productivity is another structural weakness, with Nepal’s average yield at just 531 kg per hectare against India’s roughly 2,000 kg.
Looking ahead, traders say overseas buyers are already stocking up for the 2027 Ramadan season in February and March, which could push prices higher. To reduce reliance on Indian intermediaries, the promotion centre is urging direct market access, flagging Bangladesh as a market of more than 160 million people reachable in four days, though it currently imposes a 35 percent duty against SAFTA’s 5 percent preferential rate. It also points to Pakistan, the Gulf, warehousing facilities abroad, and even a China to Pakistan land route via Kerung to Karachi. A separate FAO report adds that better logistics, agro-processing, blockchain traceability and quality certification could help Nepal capture more of the growing global market.