The price of black cardamom, which is considered a major source of income for farmers in the eastern hills of Nepal and is often referred to as “black gold,” has been rising steadily since the start of the season this year.

According to the Nepal Cardamom Traders Federation, the price of black cardamom has reached Rs 92,000 per mann (40 kg). This marks an increase of Rs 57,000 per 40 kg compared to last year. Last year, the price of the highest-grade cardamom, known as JJ No 1 cardamom, was Rs 35,000 per 40 kg. The federation explained that the price hike is largely due to a decline in production.

The price of second-grade (SD No 2 quality) cardamom has increased from Rs 33,000 per 40 kg last year to Rs 90,000 this year. Similarly, the price of the third grade (Chalanchalti No 3) cardamom has risen from Rs 31,000 to Rs 88,000 per 40 kg.

Anil Dhungana, Executive Officer of the federation, explained that a combination of factors, including water shortages and an increase in pest infestations, led to a decrease in cardamom production. He also noted that climate change has been directly affecting cardamom crops in recent years. Dhungana said that cardamom production has decreased by 50% this year compared to last year.

"Last year, we produced 5,500 metric tons of black cardamom, but this year production has dropped to only around 2,700 metric tons," Dhungana added. Despite the reduced yield, the price increase is a positive development for farmers. Many farmers, who had stored black cardamom last year due to low prices, are now benefiting from higher prices when they sell the stored stock.

Challenges of Cultivating Black Cardamom

According to the Ministry of Agriculture and Livestock Development, black cardamom was cultivated on approximately 16,000 hectares of land across Nepal in fiscal year 2022/23. The country produced 8,600 metric tons of cardamom that year. However, due to price fluctuations, disease outbreaks, and insect infestations, many farmers are becoming increasingly frustrated with cultivation of black cardamom.

Subas Bhattarai, the Vice President of the federation, said that the decrease in production is partly due to a lack of technical support for farmers. There is a shortage of experts who can advise farmers on which types of cardamom grow best at different altitudes, how to manage diseases, and how to treat soil problems. Bhattarai also highlighted that soil acidity, which has been increasing due to climate change, is negatively impacting black cardamom yields. He stressed the need for more research and studies to address these issues.

According to data from the Department of Customs, black cardamom worth Rs 1.26 billion was exported from Nepal in the first three months of this year, compared to Rs 1.89 billion during the same period last year. Nepalese traders primarily export black cardamom to India, Bangladesh, and the Gulf countries.

Two years ago, Nepal received certification to export black cardamom to the Gulf countries under Halal standards. This certification allows black cardamom produced in Nepal to be exported to countries like Qatar, which require food products to meet their specific quality standards. Bhattarai mentioned that although the market for Nepal’s black cardamom in the Gulf is expanding, some exporters are concerned about the recent drop in production levels.

To increase domestic consumption of black cardamom, efforts are being made to introduce cardamom-based products such as essential oils, various spices, and cardamom-flavored teas.