Though traders paid farmers Rs 1,275 per kg of cardamom in mid-December, 2011, they had sharply lowered the offer to Rs 800 per kg on Jan 2, 2012, citing drop in international demand.[break]
“The traders wanted us to sell our produce at ´throwaway´ prices so we took this strategic step of hoarding the harvest instead of selling them now. The strategy has helped us get better price,” said Shiva Kumar Gurung, president of Cardamom Farmers Network.
As a result of short supply, farmers said traders paid them Rs 1,000 per kilo cardamom on Monday.
The rise in prices paid to farmers has caused the price to increase in the market. Ganga Ram Maharjan, sales executive of Brown Rice and Health Foods, at Ason informed Republica that big cardamom is being sold at Rs 2,000 per kg in the wholesale market in the Kathmandu Valley.
Moreover, Gurung disclosed that more than 70 percent of cardamom farmers in eastern hill districts, the main production hub for this cash crop, are still not ready to sell their produce hoping further price hike.
Last year, farmers had received as much as Rs 1,700 per kilo of cardamom and this had encouraged them to increase productions.
Records at the District Agricultural Development Offices show that the production of big cardamom has increased this year by 150 tons compared to the last year and touched 1,900 tons.
Though farmers´ tactics helped them get better prices, Khadga Bahadur Moktan, president of Cardamom Traders Association, Taplejung said compared to last year demand for cardamom in the international market is not that strong this year.
Nepal is one of the largest producers of black cardamom, which is consumed world over. It has been major source of income for the farmers in the eastern hill districts.
Given its global demand and competitive edge Nepal possesses, Nepal Trade Integration Strategy (NTIS) has included cardamom as one of the highly potential tradable items. Nepal in 2008 had exported black cardamom worth Rs 1 billion.
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