By KP Sharma
Phuentsholing—A farmer from Mongar recently sold 2,082 kilograms (kg) of cardamom for Nu 1,585 per kg, netting over Nu 3.29 million. But had market conditions been fair, he could have earned nearly Nu 864,000 more.
Cardamom prices recently hovered between Nu 1,550 and Nu 1,850 per kg, with market watchers predicting a peak of Nu 2,000.
But traders say those hopes are dashed each season by a ood of low-quality imported cardamom, much of it from India and Nepal, masquerading as Bhutanese-grown produce.
While this is not a new practice, some exporters admit that it exists within certain circles of the trade. However, they clarify that not all exporters are involved.
The practice of mixing imported cardamom with genuine Bhutanese produce has distorted the market, lowering the overall quality and undermining buyer trust. This has not only affected prices but has also reduced demand, as consumers become wary of product.
authenticity
Such practices also pose a long-term risk to the sustainability and reputation of Bhutanese cardamom in the global market.
Rampant fronting
Kuensel investigation found that fronting is now a common practice in cardamom trade in Samtse and Phuentsholing, where many Indian traders operate under Bhutanese export licenses.
Bhutanese license holders act as legal covers, allowing foreign traders to bypass enforcement and tax systems. Some Bhutanese exporters are working with Indian traders for this purpose.
According to sources, several storage facilities are active in different parts of Phuentsholing where such activities occur. These facilities are registered under Bhutanese exporters but are operated by Indian traders.
These facilities operate at odd hours, including late nights and weekends, to avoid attention from authorities. One such facility in Phuentsholing was spotted loading cardamom on a Sunday, between 2:42 pm and 6:12 pm, at a time when ofcials would not be on duty.
During one transfer, a Bhutanese man stood outside with a group of Indian workers, while the Indian trader was reportedly in another facility in Damdhara, an area with low activity. Pick-up vehicles arrived one after another to collect the packages.
When some Bhutanese exporters reached the location and raised concerns, Kuensel was told that such trade practices had already become the norm in the market.
Many report that Indian traders are involved in both the buying and export of cardamom from Bhutan. Further, they often pay advance to local farmers to secure the supply.
Local traders suffer
The growing concern among local exporters goes beyond illegal trading. It raises deeper questions about tax compliance and fairness in the overall business environment.
While Bhutanese exporters are required to follow regulations and pay taxes even for small-scale operations, outsiders involved in the cardamom trade operate without any such obligations yet earn large prots.
