The price of cardamom has recently surged, surpassing Rs. 100,000 per 40 kilos, marking a significant shift in its price trajectory. This increase follows a long period of declining prices since 2012, when cardamom peaked at Rs. 120,000 per man (40 kilos).
Shyam Shah, a cardamom trader in Hile, explained that after a steady decline, with prices reaching as low as Rs. 25,000 per man in recent years, cardamom prices began to rise steadily from around last December. By mid-November 2024, prices had reached Rs. 100,000 per man, driven by low production and increased demand, as large traders began to stockpile cardamom.
For farmers like Nirmal Syangden of Pakhribas Municipality-2, the price hike came after most of the season’s harvest was sold, at prices between Rs. 80,000 and Rs. 90,000 per man. The price exceeded Rs. 100,000 after the farmers had finished selling, but Syangden expressed uncertainty about whether these prices would hold through the next production cycle.
The rise in prices is attributed to a reduction in cardamom production, both locally and in India, which has affected the supply. According to the Agriculture Knowledge Centre in Dhankuta, the reduction in production, compounded by increased demand, has contributed to the price spike. In particular, decreased production in India has positively impacted the Nepali cardamom market, as the two countries are closely linked in the cardamom trade.
Cardamom cultivation in Dhankuta, which has been ongoing for four decades, faces challenges due to diseases affecting the crops. The district produced 36 tonnes of cardamom in an area of about 112 hectares in the most recent year, a significant decrease from the peak production of 134 tonnes from 230 hectares in 2017/18. The ongoing decline in production, alongside rising demand, has led to the current high prices.
