Black cardamom investors ask government to facilitate exports

Export
People mixed up in trade of dark cardamom have urged the government to hold talks with authorities of India and Bangladesh to facilitate the export of the money crop.

According to Federation of Dark colored Cardamom Business owners of Nepal, the country produces around 6,000 a great deal of black color cardamom and about 95% of total development is normally exported to India. As domestic consumption is nominal, rest can be exported to Bangladesh in addition to different Gulf countries.

Officials of the federation express great tariffs imposed by India and Bangladesh and exorbitant cargo fare to Gulf countries was first making Nepali black cardamom expensive in key markets. “Citing increased development in India, India offers heightened customs valuation of Nepali dark cardamom making our product not as much competitive in the Indian industry," Raj Kumar Karki, president of the federation, advised Republica.

According to Karki, Indian authorities contain raised customs valuation of Nepali black colored cardamom to Indian Rupees (IRs) 500 every kg, up from past valuation of IRs 350 per kg. "Superior valuation attracts large sum of money as Goods and Solutions Taxes (GST),” Karki stated, adding that the Nepali farm item was losing its competitive border in its key industry. 

Bangladesh - another potential market for Nepali farm goods - has been levying 35% customs duty in Nepali black cardamom though it delivers duty free center to farm goods from Bhutan. "If it weren't for the discriminatory tariffs, we'd have exported around 50% of our total productions to Bangladesh," added Karki.

Long-haul markets found in the Gulf region usually do not look simple for farmers due to they need to pay cargo charge of Rs 105 per kg. "High cargo fare produces our product less competitive in the Gulf location," he added.

According to a report entitled National Sector Export Strategy of Black Cardamom 2017-21 released by the Ministry of Commerce in March, 2018, Nepali dark cardamom is burning off its share on earth market as a result of its failure to contend with the merchandise from countries want India, Guatemala, China and Vietnam.

The value of Nepal's dark cardamom exports rose from US$ 7,440,000 in 2004 to $39.4 million in 2013. Since 2006, direct exports of dark-colored cardamom from Nepal to marketplaces like Singapore, Pakistan and the United Arab Emirates own fallen to significantly less than 1% of total productions, according to the report.

As of now, Nepal is the world's largest producer of dark cardamom. India and Bhutan will be among other significant producers of the farm product.

Karki requested the government to carry high-level talks with India and Bangladesh to make sure easy access of the farm product in these high potential market segments.
Source: https://myrepublica.nagariknetwork.com

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