Cardamom sector losing competitiveness

Despite competitive advantage, large cardamom is slowing losing its market due to lack of policy-level backing, various taxes levied by local government agencies and extortion by militant outfits.
"Though Nepali cardamom has competitive advantage over the Indian one, India is exporting large cardamom to 10 countries but Nepal is exporting it to only four countries," Dr Devbhakta Shakya, executive director of Agriculture Entreprises Centre (AEC) said during a interaction on 'Policy Needs for Cardamom Sub-sector Development' organised by the AEC/Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today.
"Last year Nepal exported to four countries including Afghanistan but this year, Afghanistan did not import from us," he said adding that Nepal has been unable to compete with the cardamom from Sikkim and is losing markets like Afghanistan.
On one hand, farmers have to pay extortion money to militant outfits and on the other the government also milks the sector through various taxes, Shakya added.
Though large cardamom was introduced in Ilam in 1865 its commercial farming started only in the late 70s. Currently, 37 districts grow large cardamom. Of the total output, more than 97 per cent is grown in seven districts of the Eastern Development Region. "Taplejung, Panchthar, Ilam and Sankhuwasabha districts grow more than 86 per cent of the total production," Shakya said adding that their share in export comes to around 90 per cent. India is the largest importer of Nepali cardamom. Some 33,000 families are engaged in growing klarge cardamom.
Shakya opined that diversification of market was a must for the development of the sector, "Nepal needs to explore more markets. Bangladesh could be a potential buyer," he said.
Nepal is losing its competitive edge also due to lack of well-equipped ventilated storage places and high transportation cost. "Besides, Nepali cardamom desperately needs brand promotion like Nepali tea for grabbing the international market," Shakya said.
More than 80 per cent farmers are still dependent on local traders for cash at much higher rates of interest of 18 per cent to 36 per cent. "Cardamom farmers may be new avenues for financial institutions as they are dependent on non-banking channels for cash flow," he suggested.
Though some institutions like SNV are helping these farmers, government agencies like district development committees also need to focus on the issue. Suggesting some long-medium and-short term strategy for the development of large cardamom sector, the AEC executive director also urged the government to bring a special package programme in the next fiscal year's programme.
Dr Gunanidhi Sharma, vice-president of National Planning Commission (NPC), Kush Kumar Joshi, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Krishna Prasad Tamrakar, president of Agriculture Enterprises Centre (AEC) also expressed their views on the occasion.