Big cardamom prices are rising in Nepal

12-Nov-2024 01:39 PM

Big cardamom prices are rising in Nepal
Big cardamom prices in Nepal are on the rise due to a combination of factors:

Weather and Production Issues: Unfavorable weather conditions have weakened production. This is compounded by a decrease in yield from disease and other environmental challenges in recent years.

Decreased Production in Nepal: Nepal, the largest producer of big cardamom, is facing a 25% reduction in production this year. This decline follows a pattern of decreasing output in the last two years, which has been affected by both disease and weather.

Global Demand Surge: The global demand for big cardamom has increased, partly driven by the approaching Ramadan, during which demand for spices traditionally rises. This demand is further intensified by decreased production in other key producing countries, such as India and Bhutan.

Export Data: Nepal's big cardamom exports show a fluctuating trend. In 2021-22, Nepal exported 5,367 tonnes, which increased to 9,990 tonnes in 2022-23, but dropped again to 5,018 tonnes in 2023-24. Despite the drop in exports this year, large quantities are still being sent to India, which is a major market for Nepali cardamom.

Historical Production: Data from the Ministry of Agriculture shows that production in Nepal was around 9,545 tonnes in 2019-20 and over 10,000 tonnes in 2022-23, with slight decreases in production in the years between.

Given these factors, it's expected that the prices of big cardamom may continue to rise, driven by both reduced supply and strong demand, especially as Ramadan approaches. This could have significant implications for both domestic consumers and international buyers.