FCB's entry into cardamom market creates competitive prices.
'With the government's support, we are initiating to help the farmers uphold the brand of the country as organic,' Dorji Tashi, officiating Chief Executive Officer of FCB said.
The government has provided Nu 150mn for the scheme to FCB to procure the cardamom fixed by agriculture and marketing department under agriculture ministry. The initiative has helped farmers gain access to the nearest market and they do not have to travel longer distances to reach the market. They have identified convenient centers at every region for their deals. Also the scheme provides instant payments for the farmers without negotiations. FCB management claimed that with the initiative, the price that local traders offer have increased in the market. 'We are helping them indirectly to fetch better price,' said Dorji Tshering. Till now most of the cardamom trade was done by Indian traders along the bordering towns of Phuentsholing, Samtse, Samdrup Jongkhar and Gelephu. FCB has graded cardamom into five different categories with price ranging from Nu Nu 390 to Nu 470 per kg. The cardamom would be stocked in Phuentsholing godown, cleaned and repacked to be exported to the international market where the demand is higher. FCB has started exploring the opportunity to find reliable and sustainable market, according to Officiating CEO. Cardamom is next after potato to go online after its success over two years. Since the farmers take credit from the traders during need, they have been victimized with lower rates. Therefore, the farmers will sell to FCB if the agency provides similar facilities. 'We need cash during emergencies and cardamom is the only mortgage we keep with the traders for immediate cash. Since we have agreed, we have to give it to them irrespective of the price,' a farmer in Phuentsholing said. However, the prices of cardamom have not changed in Phuentsholing. The traders say that farmers are still bringing the cardamom to them dissatisfied with the price offered by FCB.
The current cardamom price in Phuentsholing stands at Nu 540. Meanwhile, the price has soared till Nu 525 for supreme and Nu 450 for small cardamom for the few days in Samtse. Pemaling Gup, Khem Raj Ghalley said that the entry of FCB has enhanced competition with the local traders and the farmers are benefitted. 'Until now, the farmers had lost hope due to price and disease. It's a good initiative. Farmers will now have choice,' he said. With better packaging and creation of a brand image, FCB hopes to receive increased demand in the future.
The price is also expected to rise in the future with more demand.
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|Publication:||Business Bhutan (Thimphu, Bhutan)|
|Date:||Apr 13, 2019|
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