Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Index 4: Socio-economic ImpactCurrent Employment and Job-Creation Prospect: It is estimated that more than 25,000 farm householdsare involved in cardamom farming in Ilam, Panchthar, and Taplejung districts alone, and as many as 67,000households in all Nepal. The sector generates employment for a minimum of 80-100 days per ha (about onemillion labour days in total/year). The estimated full-time employment equivalent (FTEE) is 5,500. In addition,a significant number of people find employment along the value chain, such as in transporting, cleaning,packaging, etc. With the promotion of value adding activities within the country, this sector could generateeven larger employment opportunities.Gender Impact: This sector creates average impact on women in terms of participation: both employmentcreatingand household decision-making. Women’s involvement is equal to men in most farm activities. Buttheir involvement in value adding activities (cleaning, grading, tail cutting) is above 50 per cent.Contribution to Skill Development: There is little skill development in this sector. This is due to the inadequategovernment programmes for improvements in farm practices. Some DADOs sporadically organize study toursfor farmers to cardamom research farms and farmers’ fields. Some INGOs are involved in training farmersin improved farm cultural practices. Some traders and exporters are providing on-the-job training to theirlabour in value adding activities.Impact on Development of Disadvantaged Regions: The impact on poor and disadvantaged groups or regionsis positive. It brings drying units (improved bhatti) into rural areas, generating income and employment. Itis a very high-value, low-volume cash crop that helps meet the cash requirements of poor households andalso invest in farm improvements. It is estimated that, in Taplejung district, as much as 70 per cent of thecash income of a farm household comes from large cardamom alone. It provides cash income to small andexcluded farmers with little and less fertile land. Large cardamom is cultivated in marginal and degradedslopes and, therefore, does not compete with other food crops for land. The production cost is small, thus,even small farmers can invest in its cultivation.Energy and Water Constraints: This sector is a high consumer of water (free and perennial flow) and energy(firewood). Although farming of large cardamom ensures ecological stability, the firewood required for itsdrying generates negative impact in terms of large firewood consumption. The estimated fuel-wood requiredfor drying 1 metric ton of large cardamom in the traditional bhatti is around 2 metric tons. This could increasedeforestation in large cardamom-growing areas. Introduction of improved bhatti could help save at least 28per cent of the required wood.Environmental Impact: Farming of cardamom ensures ecological stability to fragile mountain slopes byrequiring farmers to maintain a good forest cover (for shading) of nitrogen-fixing trees. It has been ecologicallyadapted to farming on sloping lands and forestry systems and the plants maintain permanent green cover onforest floor. But it is a high firewood-consuming sector.Market Attractiveness IndexWith a slightly modified methodology to distinguish between large and small cardamom (see below), Pakistanis identified as the most attractive market. Nepal already exports small amounts to that market, but mostcardamom is exported to India and then possibly re-exported. Other major markets for potential direct exportsare Saudi Arabia, UAE, UK, and USA. Fast-growing markets are Kuwait, USA, and UAE. No tariff preferencesexist compared with exports from India to those markets.Because HS 0908.30 covers both large and small cardamom, the methodology has been adjusted. Indian exportsof large cardamom to third countries were used to identify attractive markets. India is the major exporter26NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT