26th October 2025, Kathmandu
The Mechi Customs Office in Jhapa, a critical gateway for Nepal’s international trade, has reported a mixed yet encouraging performance in the first quarter of the current fiscal year 2025/26.
Cardamom Exports Increase
Official data indicates a robust surge in the export of several key commodities, with cardamom leading the charge, recording a significant value and volume increase. This growth is a vital signal of economic resilience in specific agricultural and industrial sectors, though the simultaneous sharp decline in tea exports highlights the persistent volatility facing the export market. Overall, the Customs Office facilitated the export of goods valued at Rs. 4.80 billion in the first three months.
The Cardamom Export Boom: A 33 Percent Leap
Cardamom, often referred to as the ‘Queen of Spices,’ emerged as the standout performer for the Mechi Customs Office. In the first quarter of FY 2025/26, cardamom exports surged by a substantial 33 percent compared to the same period in the previous fiscal year.
This notable growth translates to a massive jump in foreign exchange earnings. According to Information Officer Ishwar Kumar Humagain, the value of cardamom exported reached Rs. 1.67 billion (one billion six hundred seventy million and ninety-one lakh seventy-five thousand rupees). This is a strong rebound from the Rs. 1.07 billion recorded in the corresponding period of FY 2081/82. The increase was fueled by a substantial volume of 1,072 metric tons of cardamom shipped during the three-month window. The strong performance of cardamom underscores its critical importance as a high-value cash crop in Nepal’s eastern region, contributing significantly to the nation’s total export earnings.
The Tea Export Decline: A Major Setback
In stark contrast to the booming cardamom trade, the export of another major agricultural commodity, tea, experienced a sharp decline, raising concerns among producers and stakeholders.
Tea exports saw a dramatic drop of 40.90 percent in the first quarter of the current fiscal year. The total value of tea exports plummeted to Rs. 1.01 billion in FY 2082/83, down significantly from the Rs. 1.71 billion achieved during the same period last year. This sharp contraction suggests potential challenges in market demand, international pricing, or issues within the domestic production and supply chain, warranting deeper analysis by trade bodies and government agencies. This decline is particularly concerning as tea is a labor-intensive sector that supports numerous local livelihoods in the region.
Emerging Winners and Lagging Performers
Beyond the two major cash crops, the data from Mechi Customs Office reveals highly diverse trends across a range of other exported goods, signaling both burgeoning opportunities and areas of vulnerability in the export mix.
Spectacular Growth in Value-Added and Agricultural Goods
The period was marked by extraordinary growth in several export categories, demonstrating successful diversification and increased market access for Nepalese products:
Lentils recorded a truly remarkable growth rate, soaring by 481 percent. This exponential increase points to either a massive increase in production volume or a highly successful penetration into the export market, potentially fueled by international demand and pricing dynamics.
Veneer Sheets and Plywood, both value-added forest products, saw substantial increases of 126 percent and 100 percent, respectively. This suggests growing international demand for Nepalese processed wood materials.
Chhurpi (traditional dried cheese) exports grew by a strong 61.80 percent, indicating increasing popularity for this niche product in international markets.
The export of fresh vegetables, including cauliflower, broccoli, and cabbage, collectively grew by 71.40 percent, reflecting improved agricultural practices and cold chain logistics.
Metal Scraps exports also doubled, recording a 100 percent increase, likely a reflection of favorable international prices for recyclable raw materials.
Challenges in Traditional Exports
Conversely, some traditional export items struggled to maintain their momentum:
Ginger exports decreased by 32.30 percent.
Broom Grass (Amriso) saw a decline of 24 percent.
These contractions in key agricultural exports, alongside the tea slump, underscore the need for export diversification and quality control mechanisms to stabilize trade performance. While the rise in cardamom and lentils is highly positive, reliance on a few single commodities remains a structural risk for the overall export economy.
Overall Trade Summary and Economic Implications
The total value of goods exported through the Mechi Customs Office in the first quarter of FY 2082/83 stood at Rs. 4.80 billion. This figure represents the combined performance of diverse sectors, where the tremendous gains in cardamom and a few key value-added products managed to offset the sharp losses experienced by the tea sector and other declining items.
The contrasting fortunes of key commodities like cardamom and tea highlight the current dynamics of Nepal’s export trade: success is being found in niche, high-value agricultural products with strong demand, while the mass-market agricultural exports face significant competitive and structural headwinds. The outstanding performance of lentils, veneer sheets, and chhurpi, in particular, offers a template for future export strategy, emphasizing value addition, quality consistency, and aggressively pursuing market opportunities for non-traditional products. The challenge for policymakers will be to replicate the success seen in cardamom and lentils across other sectors while providing targeted support to stabilize traditional export commodities like tea and ginger. This mixed performance serves as a crucial barometer for the country’s export health, indicating both substantial opportunity for growth and areas requiring urgent intervention.
For More: Cardamom Exports Increase