Cardamom

Product

Large cardamom, also known as black cardamom or brown cardamom is the dried fruit of Amomum Sabulatum, a perennial herbaceous plant of family Zingiberaceae and its quality characteristics are different from that of small cardamom or green cardamom (Sukmel in Nepali). Large cardamom is abundantly grown in Nepal, thus it is also known as Nepali cardamom (Elaichi in Nepali).
 
Large cardamom was introduced into Ilam (Nepal) in 1865 AD, by Nepalese laborers. They used to go to Sikkim for seasonal work. However, commercial cultivation started in Ilam much later in around 1953 AD only. The establishment of Cardamom Development Centre at Fikkal in this district in 1975 paved the way for the development of this crop. Today large (Black) cardamom is grown only in three countries namely India, Nepal and Bhutan.
Since the conditions are conducive for cardamom production in the eastern hill districts of the country, there is an increasing trend of farmers engaged in its cultivation. Most of the cardamom producing areas is located in Ilam, Panchthar, Taplejung, Sankhuwasabha, Terhathum, Bhojpur and Dhankuta districts. Today the area has expanded to include more than 37 districts covering all development regions of the country.
Large (Black) cardamom is used as flavorings food and drink, as cooking spices and as a medicine. Cardamom is used as a spice, and in medicine; it is also smoked sometimes.
 
Cardamom has a strong, unique taste, with an intensely aromatic, resinous fragrance. Black cardamom has a distinctly more Smokey, though not bitter, aroma, with a coolness similar to mint.
 
It is a common ingredient in Indian cooking and is often used in baking in Nordic countries, such as in the Finnish sweet bread pulla or in the Scandinavian bread Julekake. In the Middle East, cardamom powder is used as a spice for sweet dishes, as well as traditional flavoring in coffee and tea. Cardamom is used to some extent in savoury dishes. 
In South Asia, cardamom is often used in traditional Indian sweets and in tea. Cardamom is sometimes used in garam masala for curries. It is occasionally used as a garnish in basmati rice and other dishes. Individual seeds are sometimes chewed and used in much the same way as mouth refresher. It is even used by confectionery; its Eclipse Breeze Exotic Mint packaging indicates that it contains "Cardamom to neutralize the toughest breath odors". It has been known to be used for gin making and in tisanes.
 

Traditional medicine

Cardamom is broadly used in South Asia to treat infections in teeth and gums, to prevent and treat throat troubles, congestion of the lungs and pulmonary tuberculosis, inflammation of eyelids and also treat stomach issues, constipation, dysentery, and other digestion problems. It also is used to break up kidney stones and gall stones, and was reportedly used as an antidote for both snake and scorpion venom. Cardamom is used as an ingredient in traditional medicine in systems of the traditional Chinese medicine in China, in Ayurveda in Nepal, India, Pakistan, Japan, Korea and Vietnam.
 

Global Trade Overview:

World Import Characteristics:alt

The world trade trained shows that there is growth of 9% in the value of Cardamom annually during the five year trade (2008-12), the size of the market in terms of quantity is also increasing at a speed of2% per year, although the price in the year 2011-12 has fallen by 17%.
Saudi Arabia is the largest importer (34.7% market share) of Cardamom, both in terms of value and quantity. It has paid high value for the product ($10118/ Ton) than world ($7334/Ton). UAE, Viet Nam, Syria and Bangladesh are other major importer.
 
List of importers for the selected product in 2012 
Product : 090830 Cardamoms
Importers Trade Indicators
Value imported in 2012 (USD thousand) Quantity imported in 2012 Unit value (USD/Ton) Annual growth in value between 2008-2012 (%) Annual growth in quantity between 2008-2012 (%) Annual growth in value between 2011-2012 (%) Share in world imports (%)
World 350514 47791 7334 9 2 -17 100
Saudi Arabia 121490 12007 10118 11 4 -4 34.7
United Arab Emirates 50871 6831 7447 19 14 25 14.5
Viet Nam 16196 7980 2030 35 22 0 4.6
Syrian Arab Republic 14750 2704 5455 -13 22 -43 4.2
Bangladesh 13237 2239 5912 19 15 -7 3.8
Egypt 12570 649 19368 49 -12 63 3.6
United States of America 12327 1160 10627 25 20 -34 3.5
Kuwait 10010 1122 8922 9 14 -28 2.9
Singapore 9386 1249 7515 1 -1 -44 2.7
Pakistan 9063 2093 4330 8 -2 -5 2.6
United Kingdom 8630 842 10249 16 2 -17 2.5
Sources : ITC calculations based on UN COMTRADE statistics
The product code selected above has been removed from the 2012 HS revision

Egypt, USA, United Kingdom, Kuwait are paying high price for Cardamom in the world market. Viet Nam, UAE, Bangladesh, USA are growing market for Cardamom. India is paying less ($6629/ Ton) than the world average ($7334/Ton) and its import has been reduced by 44% during last five years trade. Its value has also decreased by 17% during 2008-12 and by 75% during last year (2011-12). There are 138 countries in the world importing Cardamom, and India is listed on 14th position.

World Export Characteristics:

List of exporters for the selected product in 2012 
Product : 090830 Cardamoms
Exporters Trade Indicators
Value exported in 2012 (USD thousand) Quantity exported in 2012 Unit value (USD/unit) Annual growth in value between 2008-2012 (%) Annual growth in quantity between 2008-2012 (%) Annual growth in value between 2011-2012 (%) Share in world exports (%)
World 370058 53626 6901 7 4 -11 100
Guatemala 248490 35711 6958 2 9 0 67.1
India 68032 6018 11305 55 24 -15 18.4
Indonesia 16977 8151 2083 34 20 -1 4.6
Singapore 9451 1141 8283 -2 -5 -39 2.6
Netherlands 6328 469 13493 15 2 -43 1.7
Nepal 3968 599 6624 -24 -48 -82 1.1
Germany 3058 224 13652 28 19 -28 0.8
Sweden 1986 58 34241 7 -10 -19 0.5
France 1557 39 39923 61 33 -6 0.4
Sources : ITC calculations based on UN COMTRADE statistics.
The product code selected above has been removed from the 2012 HS revision
 
World trade indicates that, the Export market is growing at a speed of 4% per annum during last five years (2008-12) and the price of cardamom is also increased by 7% during the period, though in last year (2011-12) is reported a decrease by 11%.
Guatemala is the largest exporter with 67.1% world share in the total value in year 2012. This includes Large or Black Cardamom (Amomum) as well as Small or Green Cardamom (Elettaria). India, Indonesia, Singapore are other major exporters. France, India, Indonesia are gaining the market in terms of quantity and value. Nepal is losing its market as well as the value of Cardamom. France ($ 39923/ton), Sweden ($34241/ton), Germany ($13,652/ton), Netherland ($13493/ton) are charging very high price to their Cardamom than world average ($6901/ton). Nepal is getting a little less ($6624/ton) than the world average.
Nepal is placed on 6th position by ITC with 1.1% world market share on value. Other studies indicates Nepal is the largest Exporter of Large or Black Cardamom (Amomum) followed by India. (source: Avasthe R.K., Singh K.K.*, Tomar J.M.S., 2011, Large cardamom based agroforestry systems for production, resource conservation and livelihood security in the Sikkim Himalayas, Central Soil and Water Conservation Research and Training Institute, Dehradun-248195)
 

Nepal Export performance:

 
List of importing markets for the product exported by Nepal
Product : 090830 Cardamoms
Quantity: Ton Value: Thousand USD
 S.N. Country 2009 2010 2011 2012
Quantity Value  Quantity Value Quantity Value Quantity Value
World 10,008.7  19,963.4  4,755.7  20,735.6  4,120.7  30,387.4  5,901.8  46,005.8 
1 India 9,807.1  19,549.4  4,693.1  20,565.7  4,101.0  30,101.1  5,879.7  45,792.0 
2 Pakistan 120.6  265.0  21.1  53.1         
3 U.A.E. 81.1  149.0   30.0  91.1  10.6  87.1  18.0  195.4 
4 Singapore     11.3  25.4         
5 Japan     0.3  0.3         
6 Ukraine         5.0  117.0     
7 U.K.         3.0  77.8     
8 China P. R.         1.1  4.3  3.0  2.7 
9 Canada             1.0  15.0 
10 Nicaragua             0.1  0.7 
Sources : TEPC, 2013
The product code selected above has been removed from the 2012 HS revision

The provided statistics shows that more than 99% of the total export goes to India alone in all the years. Nepal's other major partner is UAE. This is because of the easyness in the cross boarder trade with India. Nepal can benefit if it diversify its trade.

 

Attractive Market for Nepalese Large Cardamom

 
 
Target Country  World Import Market Share (%)  Unit Value (USD) Annual Growth Rate in value (2008-12) Annual Growth Rate in Quantity (2008-12) Doing Business Index Country Risk for Doing Business Tariff Regime Market Scan Rank
SN World 100% 7334 9 2 - - - -
1 UAE 14.5 7447 19 14 29 A3 MFN 9.083
2 USA 3.5 10627 25 20 4 A2 MFN 9.083
3 Saudi Arabia 34.7 10118  11 4 23 A4 General 8.917
4 UK 2.5 10249 16 2  6 A3 MFN 8.333
5 Canada 1.1 9930 25 17 15 A1 MFN 8.278
6 Germany 1.7 10756 19 9 18 A2 MFN 8.250
7 South Africa 0.3 12416 32 19 41 A4 MFN 7.222
8 Kuwait 2.9 8922 9 14 77 A2 MFN 7.083
9 Netherland 1.3 7747    11 6 34 A3 MFN  6.750
10 Egypt 3.6 19368  49 -12 110 C General 6.333
11 Viet Nam 4.6 2030 35 22 99 C General 6.306
12 Bangladesh 3.8 5912 19 15 124 C Preferential to SAFTA 5.306
13 Syria 4.2 5455 -13 22 137 D General 5.167
 
The Attractive Market Table (Market Scan Table) is generated on the basis of different trade indicators. It includes total import of the country, price it is paying, growth in the price over the years, size of the market and the market growth rate, market dynamism in terms of world (ITC Trade Map), World Bank's doing business index, COFACE Country risk indicator, availability of Diaspora in the country (IOM), Distance and the applied tariff and tariff rate (ITC Mac Map).
This table shows that UAE should be the first choice to export the Nepalese Large Cardamom. USA, Saudi Arabia, United Kingdom, Canada, Germany are other are attractive markets.
 

Export Reqirement

For detailed export requirements of Nepalese Large Cardamom, please click above link.