India Business Forum

Search Button

The Indian Express

The Financial Express

Latest News

World News

Union Budget

EIW

Market Indicators

Screen

Celebrity Chat

Express Computers

Express Power

Advertisers Forum

Express Careers

Business Forum

Match Maker

Express Properties

Palki - Travel & Tours

Information Technology

Astrosurf

Eco-India

Dr Know

Screen: The Business of Entertainment

Graffiti

Crossword

Drumbeat: Ad Buzzaar


Corporate

Economy

Expressions

Markets

Leisure

 

Monday, June 22, 1998

Cardamom traders eye domestic market 

A Saj Mathews  
Cardamom, the queen of spices in the country, which is fast losing its dominance in the international market due to stiff competition from Guatemala, is now on the look out for a firm foothold in the domestic market as it is the only alternative left.

As a first step in this direction, farmers and auctioneers have already come out with consumer packets of cardamom to cater to the widespread domestic market.

"There is no other alternative, but to switch over to the domestic market, especially as heavy underquoting by Gautemela has virtually pushed Indian cardamom out of the international scene of late" says R Kumaresan, chairman of Mas Enterprises Ltd, a leading cardamom auctioneer at Vandanmedu in the cardamom rich western ghats.

The spices board is actively in the scene,assisting farmers and auctioneers set up modern packing facilities. A few like mas enterprises have already launched consumer packets of cardamom in a big way all over the country. According to latest statistics, only 200 tonnes of thetotal production of 6,000 tonnes are being exported.

India has also virtually lost major markets like Saudi Arabia and other gulf countries due to the large price difference between Indian and Guatemelan cardamom.

While indian cardamom is quoted at Rs 10 to 15 dollars a kg, that from guatemala is priced three to four dollars less.

In the beginning, countries like Saudi Arabia continued to prefer the Indian variety, despite the prices. "However, now they have also become price sensitive," say exporters. Exports, which stood at 2000 tonnes to the Gulf alone, have of late, become negligible.

According to OT Nambiar, joint director, Spices Board, guatemala had an advantage in that it possessed large areas of land where cardamom flourished without manure or pesticides.

On the other hand, the cost of production of indian cardamom, grown scientifically, was quite high, he said. Till 1985-86, Indian cardamom industry was mainly export-oriented, with at least 70 per cent of the total production of 4,700tonnes exported.

By 1990, following heavy influx of Gautemala cardamom, exports dipped to an all-time low of just 173 tonnes, badly affecting nearly 50,000 growers and 1.5 lakh labourers in India's cardamom rich western ghats.

Since 1990, efforts had been made to revive the domestic market to salvage the industry from total collapse, following the debacle in the international export market.

Here again, Gautemala cardamom posed a serious threat, with large quantities clandestinely appearing in domestic markets. Smuggling of Gautemala cardamom, on it's way to nepal, started in a small way in 1992, but grew to great proportions in the mid-nineties. Traders say the situation has improved during the current season, thanks to the steps taken by the customs authorities to check the clandestine flow of Guatemala cardamom across the Indo-Nepalese border and from Calcutta port.

"This year the smuggling was negligible so far", Nambiar said, adding that prospects were once again bright for the revival of thedomestic market.Introduction of cardamom auction for the first time outside the south in Mumbai and Delhi also proved to be a big boost to growers and traders. Plans are underway to introduce cardamom auction in Kanpur also.

Consumer packets being introduced in the domestic market are of 10 gms, 25 gms and 100 gms of estate fresh `super bold' (SEB) and `bold'(AGB) varieties, according to TT Jose, managing director of Mas Enterprises.

The major markets aimed at were Mumbai, Chennai, Kanpur, Ahemmedabad, Bangalore and Hyderabad, he said. According to Spices Board sources, a number of growers and auctioneers planned to set up packing facilities with the board's help to tap domestic demand to the maximum.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Top


EcoIndia

Global Tenders invited by MSTC

The National Stock Exchange of India (NSE)

 

Interested in Hi-tech ventures with Israel? Click here


The Indian Express  |  The Financial Express  |  Latest News
Screen  |  Express Investment Week  |  Market Indicators  |  Express Computers
Astrosurf  |  Eco-India  |  Travel & Tourism  |  Information Technology  |  Drumbeat: Ad Buzzaar
Advertisers Forum  |  Career India  |  Business Forum  |  Match Maker  |  Express Properties