The country's exports, which stood at 3,500 mt in 1970-71 declined drastically during the last ten years, with export registering just 240 mt in 1996-97, the Spices Board said.

From 270 mt worth Rs 13.40 crore with a unit value of Rs 125.94 per kg in 1987-88, it came down to 240 mt valued at Rs.9.21 crore at a unit value of Rs 383.88 in 1996-97.

Cardamom production in India, world's largest producer until 1970-80, had been fluctuating in last two decades, while Guatemala's production has been on increase, it said.

The country's production, which was 3200 mt in 1987-88 has increased two-fold to 6,625 mt in 1996-97, compared to Guatemala's 8,970 mt to 14,800 mt during the same period.

Its production has made a breakthrough in the last four years, with level reaching 7,900 mt in 95-96, but it declined to 6,625 mt in 96-97, due to failureof timely onset of south-west monsoon.

A significant factor which contributed to decline in cardamom export from the country was the very low cost of production in Guatemala, it said.The cost of production was hardly two US dollars per kg in Guatemala as against four US dollars or more in India in 1991.

Guatemala, with poor domestic demand, was left with no option but to flood the world market. It followed a strategy of supplying cardamom at prices lower than that of India in the Middle east markets, the statistics said.

There were reports that around 3,000 mt cardamom have entered Indian markets illegally through nepal during last season, it said.

On account of negligible exports, Indian cardamom had been pushed to a state of being almost a domestic commodity since 1987-88, it said.

Though there has been a notable increase in the productivity of cardamom in India in the last four years, cost of production has not come down much.

Even with fall in prices, the country was not able to match theprices of Guatemala, the board said.

Major problems hindering cardamom production in India included recurring climatic vagaries especially drought and delay in monsoon, deforestation and resultant changes in the ecology, crop loss due to pest and disease incidences and non-exploitation of the irrigation potential, it said.

In a bid to regain the past glory in the international trade, the board had been taking a number of steps to increase its exports. The schemes for export development included reimbursement of air freight charges at Rs.20 per kg, exemption of export cess and popularising consumer packs with the indian spice logo of the board, it said. Domestic consumption of cardamom in India is likely to be 9,500 mt by the turn of the century and would cross 12,500 mt by 2005 ad, field studies indicate.

The total demand for cardamom within the country under different segments was expected to be around 9,500 mt by 2000 AD. Registering an overall compounded growth rate of six per cent per annum, studiesconducted by Spices Board said.

Demand for cardamom in domestic market had grown sharply in recent years consuming almost the entire production, the studies said.

The cardamom consumption in household category is estimated to grow at a compounded annual growth rate of 3.7 per cent beyond last year and attain the demand level of 6,150 mt by the end of the century.Stating that average household consumption by urban and rural population was about 35 grams per year, the study said these were used as an ingredient in various food items, mouth freshner and medicines.

The demand from the industry was expected to reach 2,050 mt by 2000, with a growth of 15 per cent per annum in this segment. Though total consumption was less, industrial units preparing items including pan masala, herbal medicines and other masala products were the bulk consumers.

Cardamom's demand from hotels, restaurants, bakery, sweetmeat and pan-bida shops was increasing at the rate of 10 per cent per annum and this trend was likely tocontinue to reach the level of 1,250 mt by 2000, the study revealed.

Northern India is the major consumer with 36 per cent followed by western with 28 per cent, eastern 22 per cent and southern region 14 per cent, the study said.