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Lao Cai Cardamom Association Strike for official cardamom export

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The Cardamom Association (CA) in Lao Cai formed & recognized by Lao Cai Provincial’s People Committee by end of 2010 (in accordance with OCD consultant’s recommendation) with 130 members whose are key cardamom producers and traders in this sector of the province. Since become official association, CA has taken great effort to motivate cardamom producer, collector and trader within the sector to improve and control cardamom traded quality; strengthen its network in district and commune level and recommend local authorities to develop and public policies for strengthen sector performance.

To date, the CA has expanded its network to 48 communes with estimated 500 members in three key cardamom production districts (Sa Pa, Bat Xat and Van Ban of Lao Cai province). Beside, all Vietnamese and Chinese traders were contributed to operational fund of CA with estimated total 2,000 USD by end of 2011.

In year 2011, the quality of cardamom improved remarkably because farmers in 57 communes followed well correct harvesting agenda (all communes start harvesting from middle of October); big Vietnamese and Chinese trader was committed and implemented strongly appropriate buying schedule. Estimate 80% percent of total 2,500 MT of dried cardamom produced this year graded as best class quality which has been helped to stable buying price and export volume (6 USD per kg with 40 MT per day trade to Chinese market);

The bottleneck related to the natural and income tax issue from trading cardamom was settling with official request and meeting of CA with PPCs and relevant departments recently (includes Department of Agriculture and Rural Development, Department of Natural Resource Management, Tax Department, Trade and Industry Department, Finance Department and Public Security Department). Result from the meeting was the official dispatch from PPCs to request those departments pay stronger attention to support cardamom sector in general and CA in particular. In which, clear messages was released by PPCs to those departments was supporting cardamom producer to prepare sufficient procedure to ask to natural tax exemption (10 percent of total export value), support CA to register to income tax declaration and certify product origin for official cardamom trade; DARD will be a focal point, in collaboration with relevant departments to formulate official comprehensive long-term development planning for cardamom sector in 2012 (from production – processing to trading).

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