According to traders in Bodinayakannur near Madurai, bumper crop in the country especially in Kerala has resulted in a glut in the market leading to fall in prices. Idukki district in Kerala alone contributes to nearly 80 per cent of the total production followed by Karnataka 15 per cent and Tamil Nadu the balance 5 per cent. In Karnataka cardamoms are grown in Coorg, Hassan and Chikmagalur districts and in Tamil Nadu it is grown in places like Salem and Theni.

Low price has been the order of the day in the past few weeks. This trend is expected to continue further for another couple of weeks unless there is a substantial increase in the quantum of exports. Prices of cardamom are currently ruling at Rs 740-750 per kilo for the Alleppey green extra bold (AGEB) variety, Rs 600-610 per kilo for Alleppey green bold (AGB) and Rs 650-670 per kilo for Alleppey green superior (AGS) variety.

Every year there has been a considerable improvement in the quantum of exports of cardamom but since this year there is glut in the market it would be advisable for traders to look at exporting in order to realise reasonable prices for their produce, sources added. In 1996-97 the country exported nearly 270 tonnes of cardamom, about 370 tonnes in 1997-98 and 475 tonnes in 1998-99. During the period April-July nearly 185 tonnes of cardamom were exported, the main markets being Japan and Saudi Arabia.

India has been facing severe competition from Guatemala in South America and Srilanka. Guatemala cardamoms are a major competitor to the Indian varieties as the country quotes lower prices for its produce, sources said. This is possible because the entire produce of Guatemala which is about 12,000 tonnes is being exported as against India where the focus is on meeting the demands of the domestic market.