Cardamom market is finding support in reports that the next crop would be delayed on account of insufficient summer showers in the producing areas. Higher exports due to lower prices when compared to the previous year are also helping the market. Traders estimate the market to remain steady until the new crop arrives in the market.
?Several plantations in Idukki have suffered damage due to the drought and high temperature. Plants have wilted and productivity would suffer. Only those plantations capable of irrigation have managed to escape unhurt. Water table in the area is also precarious,? KK Devassia of Cardamom Growers Association told FE.
Cardamom producing areas in Kerala have not received any summer showers during the current season. Cardamom needs low temperature, high humidity and incessant drizzles. Heavy rains could damage the crop, while intermittent rains that keep the atmosphere humid augur well.
Devassia feels that export would be higher as Guatemala has not fully recovered from the damages it suffered to its plantations. ?Quality cardamom is scarce in the global market and we stand a good chance to export more. This would support the domestic market. Our domestic consumption is also robust,? he added. Cardamom exports touched the all-time high of 3,900 tonne, valued at R308.32 crore, during April-January this fiscal, according to Spices Board figures. The increase in volume terms was 390% and 237% in value terms.
Cardamom prices at the auction centre of the Board as on Friday evening stood at R750 per kg. The market had even gone below the R500 per kg at one stage when arrivals were above 100 tonne. Cardamom prices had reached a record high of R1,950-2,000 per kg in June 2010 due to shortage of the commodity. A major reason for the record price during 2009-10 was lower production in competing Guatemala.
The current production (2011-12) could be as high as 15,000-16,000tonne trade sources said. Some estimates put the production above 18,000 tonne. Sources from the Kerala Agricultural University say that new areas have come under cardamom. India is the second largest producer after Guatemala, which leads with 60-66% of the production. Cardamom production in Guatemala declined from 2009 due to flood related damages.