Low demand, production fall hit cardamom rally
“Production is down by 50% when compared to last year. If not for the sluggish demand from north India, the market would have moved up higher,” PC Punnoose of Cardamom Processing Marketing Company (CPMC), Kumily, told FE. “Severe winter is hampering sales in north India and buyers are reluctant to contract good volumes, he added.
Rains were lower in the cardamom-producing regions in India leading to widespread damage to the plantations, he added. Cardamom plants have 9-10 pickings per season starting from July and extending up to April.
Lower summer rains and delayed monsoon leads to delayed flower setting and lower yield. The last production (2011-12) could be as high as 15,000-16,000, trade sources said.
Spices Board estimates India’s production in 2010-11 to be 10,350 tonne.
Arrivals at the auction centers are down by 50% when compared to the arrivals during the same time last year. “Farmers are also holding back supply in hope of a gain and arrivals at the auction centers are in the range of 40-45 tonne when compared with 75-80 tonne during last season,” Punnoose said.
Exports are on the lower side with prices moving up and may end up lesser when
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