Nepal: Cardamom export earnings hit record high in FY’26 on stronger prices

• Export revenue jumps 65% y-o-y, shipments surge by 49% 
• Firm farmgate prices boost growers’ returns, encourage area expansion

Nepal’s large cardamom sector achieved a record milestone in FY’26 (17 July 2025-16 July 2026), with export earnings rising 64.6% y-o-y to NPR 12.64 billion, the highest value ever recorded for the spice. The increase was primarily driven by stronger international prices rather than a sharp rise in export volumes. Shipments reached 6,395 tonnes (t), up 49% from 4,301 t a year earlier, while the commodity contributed 4% of Nepal’s total exports, highlighting its growing importance as a foreign exchange earner.

Higher prices lift farmer sentiment

According to industry participants, farmgate prices ranged between NPR 2,400-2,700/kg at the start of the harvest season in August and climbed up to around NPR 2,800/kg during peak arrivals in November-December, marking the highest levels in the past decade. Strong price realisations enabled farmers to liquidate most of their inventories, leaving minimal carryover stocks and improving cash flows across producing regions.

Production growth still limited by productivity

Despite the record export value, which has encouraged farmers to expand cardamom acreage, industry stakeholders noted that production remains below its potential due to disease incidence and inadequate access to quality agricultural inputs. Nepal is expected to produce around 6,500 t of large cardamom this year, compared with 5,200 t last year, but output remains well below the estimated potential of 10,000 t annually. Producers continue to seek concessional financing, technical support, and improved storage infrastructure to reduce post-harvest selling pressure and stabilise prices.

Outlook

Large cardamom prices are expected to remain supported in the near term as low carryover stocks and steady regional demand underpin the market. However, future price direction will depend on crop prospects in Nepal, India, and Bhutan, while improvements in productivity and storage capacity will be critical to sustaining export growth.