White Brown Cow
Interaction Programme n Marketing of Large Cardamom
On, 17th December 2021, Kangchenjunga Landscape Conservation and Development Initiative (KLCDI) successfully organized a workshop “Interaction Programme on Marketing of Large Cardamom” in Kathmandu.
The major aim of the workshop was to identify and deliver the uniqueness of Nepalese Large cardamom in the international market and to initiate a single grading and processing standard for huge cardamom in Bhutan, India, and Nepal.
Key Messages of the Workshop
Identity
Guatemala produces almost 65% of global production of cardamom. Nepal shares lower percentage of global production. Moreover, Nepal faces competition with other countries e.g., Guatemala, Indonesia.
Further there are different types of products named as “Cardamom” in global market: Cau gao, Alaichi, Siam and Sukumel as commonly known as large cardamom. This broad nomenclature is one of the key issues of Nepalese large cardamom. Cardamom found in Nepal is known as Nepal Cardamom or Large Cardamom and is widely cultivated in Bhutan, India and Nepal. India is the major market of Nepalese Alaichi. India re-exports the Alaichi to other countries especially in the middle east as Indian Alaichi. A trader informed “we have several warehouses at Eastern Tarai: in Birtamod and Biratnagar. We generally receive advance up front from Indian importers and in those warehouses, we pack our Alaichi in the sacs provided by Indian importers using their own brand“. This is critical issue and as a result, our product has lost its identity.
Further, the variety cultivated in Nepal is same as that of India and Bhutan; and the geographical conditions are also similar in this Eastern Himalayan stretch. These lead to similarity in product specification and without remarkable specifications. However, a Nepalese Alaichi exporter participated in the workshop informed “though there are similarities in products from Bhutan, India and Nepal, our Alaichi is stronger in taste. Further, the drying system enables our product to lock / capture its taste for longer period without developing fungus“. This change in taste is only differentiated by traders who are engaged in Alaichi trade for years, thus needs laboratory analysis. The exporter further said “if we have laboratory facilities in the border check points, then it will be easier for us to export Nepalese Alaichi with our own specifications“.
The new revision for HS code is due on 2022. There should be 8 digit HS code for Nepalese Alaichi in place of existing 6 digit code, which is generic.
Finding market other than India
Muslim countries are the major importers of Nepalese Alaichi. India also re-export Nepalese MAPs to these muslim countries, especially in the Gulf countries and in Bangladesh. Halal certificate will on Alaichi will fetch higher price and further the certificate will make the export easier. The certification needs substantial amount of money thus a support is needed from Government or other bilateral aid agencies or transboundary organizations.
Another hurdle to find market other than India is the higher cost of production. India gives subsidy to Alaichi farmers. For instance, Sikkim government give IC 50/kg subsidy for Alaichi therefore the farmers can sell in slightly reduced cost. In Nepal, we do not have subsidy on Alaichi. Aggravated to this, we have to pay higher and multiple tax resulting the higher price. As a result, it will be difficult for Nepalese cardamom to find the international market due to market competitiveness.
Production
Nepal export Alaichi worth NPR 6 – 8 billion each year.
Eastern Nepal is the major production area for Alaichi and now Alaichi is cultivated in all possible areas. Now the cultivation is expanded in other districts e.g., Lamjung, Gorkha, Kaski but farmers of these districts do not have adequate knowledge and experience on Alaichi cultivation. Based on successful practices of Eastern Nepal, GoN and allied agencies can develop practical cultivation manual including benefit cost analysis so that farmers from new districts can cultivate without much difficulties. Training to lead farmers of western districts by existing commercial farmers will be one alternative.
The existing farmers are now showing reluctancy in cultivating Alaichi because of inadequate irrigation facilities. The vision of mass cultivation is hard to achieve as far as cultivation in restricted to ‘kholsa’. Thus, irrigation facility is one of the basic needs to expand the production.
Alaichi takes three years to mature. Within this three years, commercial farmers have to invest without returns. Therefore, GoN should give interest subsidy to initial three years of plantation; and promote other crops (e.g., Kiwi) which will give returns from second year.
Marketing
Till now, Alaichi and other products are exported via Kolkata. Gulf countries are the new market destinations for Alaichi. Therefore, GoN should request Government of India to provide Mumbai port for export. This will substantially reduce the transportation cost. This is not easy but at least GoN should give a try.
In Nepal, exporters have to demonstrate LC before shipping the commodity. Gulf country is the new market for Alaichi and in Gulf countries, there is auction system. LC won’t work in this case. This should be informed to GoN officials, especially the officials of customs and finance.
Participation at international trade fairs help to find new markets for Alaichi. Government through TEPC should ensure that adequate budget is allocated to traders/ trader’s associations to get participated in the trade fairs.
One of the easy ways of marketing is giving Nepalese Alaichi as souvenir products to foreign delegates and guests.