"Low demand has dragged down the prices to a two-year low. We are still not sure how the prices will move as fresh demand is not encouraging," said Khadga Bahadur Moktan, president of Cardamom Traders´ Association, Taplejung. [break]
"Overseas demand is weak. Production this year has grown substantially. I do not think prices will go up to the level seen last year," he told Republica.
On Sunday, traders here purchased black cardamom at Rs 1,200 per kg. In the same season last year, farmers in the region had received Rs 1,250 per kg and in 2009 they were paid Rs 1,350 per kg for this popular spice variety.
As a result of this drop, retail price of cardamom dropped in major markets across the country. For instance, in Kathmandu, the retail price of cardamom dropped to Rs 1,400 per kg whereas just about a month ago it was priced Rs 1,800 per kg.
“Prices dropped mainly because traders procuring cardamom from farmers have started supplying the freshly harvested commodity at lower rates,” said Ganga Ram Maharjan, a spice retailer in Ason, Kathmandu.
Local traders buying cardamom from farmers, meanwhile, attributed the drop in prices to low overseas demand.
Another cardamom trader Dinesh Adhikari predicted that farmers this year might not enjoy the price level they witnessed last year or the year before as demand for the spice from overseas markets has shrunk a great deal.
Price of cardamom, of which Nepal is one of the largest exporters in the international market, showed major upheavals during the first two weeks of October, when the harvesting began. However, it has stabilized for last two weeks.
According to District Agricultural Development Office (DADO), production of cardamom in Taplejung last year had touched 1,750 tons. This enabled farmers in the district enjoy a turnover of Rs 2.50 billion.
“The production this year will grow up further,” said Motilal Yadav, chief DADO, Taplejung.
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