Why Nepal’s main agricultural export product, large cardamom, does not reach the world market

Sushant Acharya, Sagar Raj Sharma (), Bishnu Raj Upreti () and Marie-Luise Matthys ()
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Sagar Raj Sharma: Kathmandu University
Bishnu Raj Upreti: Policy Research Institute (Government Think Tank)
Marie-Luise Matthys: University of Bern

SN Business & Economics, 2021, vol. 1, issue 1, 1-21

Abstract: Abstract While subsistence agriculture dominates in Nepal, certain high-value crops have shown great promise as export crops in recent years. Large cardamom is one such high-value crop, constituting about 5% of total exports from the country. Although development of agricultural value chains has connected smallholder farmers from developing countries to world markets, export of Nepali large cardamom is confined to India only. This paper has examined the factors that constrain the distribution of Nepali large cardamom to world markets beyond India. Primary data was collected from Ilam and Jhapa districts in eastern Nepal. Interviews and consultations were conducted with 54 purposively selected research participants including farmers, intermediaries, traders, and stakeholders. Data analysis was based on Trieneken’s agricultural value chain analysis framework for developing countries. Findings revealed that increased large cardamom distribution to world markets is constrained by Nepal’s landlocked geography, limited access to Indian transport infrastructure, strict food safety regulations, high tariffs, and complexities in customs clearance procedures. Nepal’s poor market infrastructure, characterised by a lack of accredited laboratories, platforms for auctions, and warehouse facilities, has further weakened the country’s export capacity. Moreover, that the same trade code is used for all types of cardamom in world markets has put Nepali traders at a disadvantage as they lack specific information regarding prospective markets and trade volumes outside India. This paper, therefore, calls for a large cardamom market study together with capacity-strengthening measures for institutions, the facilitation of export constraints, and a review of the existing export strategy.

Keywords: Large cardamom; Export constraints; Indian market; Value chains (search for similar items in EconPapers)
JEL-codes: Q11 Q13 Q17 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s43546-020-00014-9

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