Ban on Indian banknotes hits cardamom trade

Phidim, November 18

The Indian government's decision to ban INR 500- and INR 1,000- banknotes has halted trade of cardamom in the eastern region.

The price of cardamom in Nepal is determined by the Indian market. Without an agency to determine cardamom price in Nepal, Nepal Cardamom Entrepreneurs' Federation said cardamom trade came to a grinding halt in the past nine days.

Central Vice-president at NCEF Dipak Nepal said the trade would remain halted until new banknotes came into operation in India.

Of the total cardamom produce, 65 per cent is exported to India, from where it reaches world markets.

A cardamom trader said, "We work with Indian traders. After they halted transaction, we have not been able to sell our produce." He added that it would take another month before the trade resumes.