Often referred to as “black gold” or “black cardamom” and locally called “Alaichi”, Nepali large cardamom is characterised by its spindle-shaped, light-to-dark brown pods.
Its smoky flavour, a result of a unique drying process in traditional Bhatti ovens, is a staple in South Asian cuisines. Large cardamom has a distinct roasted aroma and taste compared to the green variety, making it a prized ingredient in regional cooking.
As a high-value cash crop, large cardamom serves as a significant source of income for farmers in Nepal and neighbouring regions of India and Bhutan. It is the third most expensive spice in the world, after saffron and vanilla.
Nepal, the largest producer in the world, accounts for around 68 per cent of global production. Cardamom, cultivated hugely across Nepal, spans over 50 districts, with 20 engaging in commercial-scale production, contributing over five per cent to the nation’s total exports.
Nepal leads the global production of large cardamom, contributing 68% of the world’s supply and generating $61.6 million in export revenue by 2023. Mainly grown in the four eastern districts, Taplejung, Panchthar, Ilam, and Sankhuwasabha together produce 87 per cent of the country’s cardamom, engaging more than 125,000 households in the process.
Nepal has earned substantial foreign currency from cardamom exports, generating $45 million in 2016, more than double the revenue from tea exports ($18 million). The export value reached $61.6 million in 2023.
Recent developments in prices
The price of cardamom has surged past NPR 110,000 (approximately $833) per mann (40 kg), marking the highest price in the last 12 years. The Cardamom Development Centre attributed this rise to a significant drop in production.
Rajan Pariyar, the centre’s head, stated that cardamom prices peaked at NPR 114,000 (about $864) per quintal before slightly declining, though they remain at record highs. Production has fallen by 25 to 30 per cent this year, with last year’s output of 5,000 metric tonnes reduced to an estimated 4,000 metric tonnes.
Despite the decline in production, the price hike has boosted export earnings. In the first six months of the fiscal year 2024/2025, Nepal exported approximately 2,674 tonnes of cardamom worth NPR 4.56 billion (around $ 52.6 million), compared to NPR 3.90 billion ($28.5 million) during the same period last year.
Farmers are holding back 20 per cent of their harvests, drying and storing them at home, expecting prices to rise further during the off-season.
Challenges in the global market
The exports primarily depend on India, which absorbs 99.6 per cent of the total. India then re-exports the spice to Pakistan, Bangladesh, and the Middle East at higher prices. Pakistan alone accounts for 60 per cent of India’s cardamom exports, using it extensively in traditional dishes like biryani.
Nepal faces significant challenges in diversifying its export markets. Tariffs imposed by countries like Pakistan and Bangladesh, despite their SAFTA membership, remain a major barrier.
Pakistan’s tariff rate can reach 60 per cent, while Bangladesh’s duties can climb to 89 per cent. Furthermore, ambiguity in international trade classifications makes it difficult to assess the market for large cardamom specifically, as all cardamom varieties are grouped under the same code.
This year, cardamom prices soared to NPR 110,000 per mann (approximately $833), the highest in 12 years, despite a 25–30% drop in production. Nepal’s reliance on India for trade routes further complicates matters. For instance, exporting cardamom to Karachi, Pakistan, through the Kolkata port takes about eight weeks.
A permit for direct overland routes like the Western Nepal-to-Wagah corridor could reduce transit time. Alternatively, access to the Mumbai port would cut delivery time to 10 days. High transportation fees, delays in customs clearance, and storage issues further inflate costs.
The road ahead for Nepal’s ‘black gold’
Despite these challenges, efforts are underway to expand Nepal’s export markets. Traders and experts have urged the Nepali government to negotiate reduced tariffs with Pakistan and Bangladesh. Likewise, they are exploring direct trade routes, such as the Kakarbhitta-Panitanki-Phulbari corridor to Bangladesh.
This year’s price surge is partly due to reduced production in competing countries like India and Bhutan, which has benefited Nepali farmers.
Nepal’s cardamom exports face challenges such as high tariffs in Pakistan and Bangladesh and dependence on Indian trade routes. However, Nepal’s cardamom production continues to decline annually due to diseases, pests, and irregular rainfall during the blooming season.
While the path to export diversification and industry expansion is challenging, the combined efforts of farmers, traders, and government initiatives offer hope.
With strategic focus and diplomatic engagement, Nepal’s large cardamom industry could unlock its full potential, helping the nation’s economy prosper.
Sudipa Mahato is a junior editor with Nepal Connect.
