Chhudzom Farmers Struggle with Falling Cardamom Prices as FCB Quotas and Middlemen Shape Market Dynamics

TIL BDR GHALLEY | Thimphu

As the 2025 cardamom harvesting season nears its end, farmers in Chhudzom Gewog under Sarpang are facing growing uncertainty. Once a reliable source of income, cardamom has this year brought anxiety instead of assurance, with falling prices, excess unsold produce, and heavy reliance on middlemen reshaping the market landscape.

Farmers estimate that nearly 75 percent of the harvest remains unsold, a situation they attribute to a combination of FCB’s quota-based buying system, late market intervention, and the dominance of local vendors.

At the centre of the concern is how the Food Corporation of Bhutan (FCB) operates during the harvest period. According to Chhudzom Gup Bishnu Prasad Rai, the lack of coordination between FCB and local authorities has intensified tensions between farmers and buyers.

“FCB comes to the gewog with a fixed quota without consulting us,” the Gup said. “If they coordinated with the gewog, we could inform them about the right harvesting period and how long they should stay.”

He explained that FCB’s withdrawal immediately after fulfilling its quota often triggers a chain reaction in the local market. “Last time FCB paid Nu 68,000 per 40kg, which was the same rate offered by local vendors. But once FCB completed its quota and left, vendors reduced the price. Farmers suffered.”

The Gup believes that earlier arrival and longer purchasing periods could help stabilise prices and reduce farmers’ vulnerability. “If FCB stayed for three weeks to a month, it would make a real difference. Many farmers cannot afford to wait because they have urgent household needs.”

Despite FCB’s mandate to protect public welfare, farmers say inconsistencies in timing and implementation have limited its impact. “FCB is meant to serve the public, not vendors,” the Gup said. “There must be fairness in the system.”

While middlemen play a role in creating competition, their growing influence has also distorted prices on the ground. According to the Gup, too many vendors operating simultaneously often confuses farmers rather than empowering them.

“Without competition, prices won’t rise,” he said. “But too much interference from vendors also pressures farmers to sell at lower rates.”

He raised concerns over vendors who accumulate large quantities of cardamom and resell them to FCB at higher prices. “Some vendors come with 30 to 40 bags. FCB should verify whether those bags come from one household or are collected from farmers at low prices.”

Based on local observations, early-season cardamom purchased at Nu 52,000 to Nu 56,000 per 40kg was later sold to FCB at Nu 68,000, generating profits of around Nu 300 per kilogram for vendors. “If a vendor bought 100 bags at Nu 56,000 and sold them to FCB at Nu 68,000, the profit could reach about Nu 1.2 million,” the Gup said.

For farmers like Prem Bdr Ghalley of Sherabling chiwog, the quota system itself remains a major constraint. “If our production exceeds FCB’s quota, the extra cardamom remains unsold,” he said. “There is no guaranteed income for the surplus.”

He described how FCB’s exit from the market weakens farmers’ bargaining power. “FCB is the largest buyer here. When they stop purchasing, local traders do not have to compete anymore. They push the price downward.

According to him, the impact is both predictable and painful. “Farmers who haven’t sold rush to vendors, increasing supply and pushing prices further down.”

Prem Bdr Ghalley said timely intervention could prevent distress sales. “Recently, vendors offered only Nu 58,000. After FCB arrived, prices increased to Nu 68,000. Timing makes all the difference.”

He added that early arrival could prevent farmers from selling early at low rates out of desperation.

The confusion is felt acutely at the household level. Mon Bdr Ghalley, another farmer from Lhayul chiwog, said fluctuating prices and multiple buyers create uncertainty during peak harvest. “Middlemen confuse us with different prices and force us to sell low. If we had direct buyers, we would earn better.”

He added that families with larger households often sell early, regardless of price, just to meet daily needs.

From Lhayul, farmer Sachinda Nanda Ghimery echoed similar concerns, saying middlemen reduce the benefits FCB could otherwise provide. “If farmers depend solely on FCB without middlemen interference, we would be more profitable,” he said, calling for stronger oversight and transparent buying procedures.

He said the role of FCB must be strengthened with transparent procedures to prevent vendors from dominating the supply chain.

The absence of direct export access further limits farmers’ options. Tula Ram Ghalley, a resident of Gaylegthang chiwog, said farmers remain dependent on local dealers for access to India and Bangladesh. “We don’t have direct access to those markets. Everything is handled by middlemen,” he said. “They manage the process, but they also take most of the profit.”

He said this dependency means farmers must accept whatever rate local buyers offer.

Farmers said the regional market slowdown has worsened their situation.

Adding to local challenges is the broader regional slowdown. According to Gup Bishnu Prasad Rai, instability in consuming countries has weakened demand. “Cardamom prices fell because purchasing countries are unstable. Even with FCB and vendors, market conditions in India affect us.”

He stressed that opening formal trade access to Bangladesh could ease pressure on farmers. “If the government opens a business window for Bangladesh shipments without hurdles, it would help stabilise prices.”

Farmers across Chhudzom gewog shared a common appeal: FCB must work more closely with gewogs to ensure fairness.

Prem Bdr Ghalley said “Before FCB enters the village, they should consult local leaders to ensure a transparent process. This prevents vendors from exploiting low prices and selling high to FCB.

He suggested adopting a household-based purchase system. “If FCB buys a fixed amount from each household, it ensures equal access and prevents a few vendors from capturing all opportunities.

FCB should be easily accessible and fair pricing practices are maintained for the welfare of the farmers. As it is meant to serve the public he said.

The Gup agreed that a more coordinated system is urgently needed.

Chhudzom is the highest cardamom producer in Sarpang. But this year, almost 75 percent of the harvest is still unsold. We must fix timing, coordination, and monitoring.” he said.

As the season closes, the message from Chhudzom is clear. Without timely intervention, better coordination, and stronger market safeguards, cardamom farming — once a dependable livelihood — risks becoming an uncertain gamble.

Farmers hope reforms will allow FCB to act as a stabilising force rather than a temporary presence, and ensure that middlemen no longer dictate the fate of rural producers.

Related Posts

About The Author