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

Author

Listed:
  • Sushant Acharya

    (Kathmandu University)

  • Sagar Raj Sharma

    (Kathmandu University)

  • Bishnu Raj Upreti

    (Policy Research Institute (Government Think Tank))

  • Marie-Luise Matthys

    (University of Bern)

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.

Suggested Citation

  • Sushant Acharya & Sagar Raj Sharma & Bishnu Raj Upreti & Marie-Luise Matthys, 2021. "Why Nepal’s main agricultural export product, large cardamom, does not reach the world market," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.
  • Handle: RePEc:spr:snbeco:v:1:y:2021:i:1:d:10.1007_s43546-020-00014-9
    DOI: 10.1007/s43546-020-00014-9
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    References listed on IDEAS

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    1. Anne Tallontire & Maggie Opondo & Valerie Nelson & Adrienne Martin, 2011. "Beyond the vertical? Using value chains and governance as a framework to analyse private standards initiatives in agri-food chains," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 427-441, September.
    2. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    3. Alain de Janvry & Elisabeth Sadoulet, 2019. "Transforming developing country agriculture: Removing adoption constraints and promoting inclusive value chain development," Working Papers hal-02287668, HAL.
    4. Dong, Fengxia & Jensen, Helen H., 2007. "Challenges for China's Agricultural Exports: Compliance with Sanitary and Phytosanitary Measures," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 22(1), pages 1-6.
    5. Carlo Pietrobelli, 2008. "Global value chains in the least developed countries of the world: threats and opportunities for local producers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(4), pages 459-481.
    6. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.
    7. World Bank, 2020. "Doing Business 2020," World Bank Publications - Books, The World Bank Group, number 32436, December.
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    Cited by:

    1. Wen Chen & Lizhi Xing, 2022. "Measuring the Intermediate Goods’ External Dependency on the Global Value Chain: A Case Study of China," Sustainability, MDPI, vol. 14(7), pages 1-21, April.
    2. Prajwal Magar & Prashna Budhathoki & Subarna Kandel & Rachana Tandan Chhetri & Laxmi Devkota, 0. "A Review On Marketing And Value Chain Of Nepal Cardamom (Amomum Subulatum Roxb.) In The Eastern Hills Of Nepal," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 3(1), pages 28-32.

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    More about this item

    Keywords

    Large cardamom; Export constraints; Indian market; Value chains;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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