Cardamom prices up on supply woes

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Kochi | Published: September 25, 2018 12:12:05 AM

Supply constraints, which have pushed down the cardamom arrivals by 20-25%, are likely to keep the market high, traders said.

Cardamom prices up on supply woes

Supply constraints, which have pushed down the cardamom arrivals by 20-25%, are likely to keep the market high, traders said.

Auction prices touched an average of Rs 1,350 per kg, which have now corrected down to Rs 1,200-1,250 per kg range, which is considerably higher by 30-40% than the average price a year ago.
India is the second largest producer of cardamom in the world after Guatemala.

PC Punnose of Idukki based Cardamom Processing and Marketing Company (CPMC) told FE that heavy rains and winds during the month of July and August have damaged cardamom plants and disruption in harvesting during August would limit supply.

“Plants fell down due to heavy winds that accompanied the rains. Higher moisture in the soil led to decay and fungus attacks. We anticipate production to be lower by 20-25 % this season,” he said and added that normal works were disrupted in the month of August due to heavy rains.

Earlier the Association of Planters Kerala (APK), the apex body for planters, earlier estimated that the plantation sector had suffered damages to above Rs 700 crores with unusual winds and continuous downpour damaging standing crops, shade trees and ancillary buildings and roads. APK had estimated cardamom production loss to be at 35-40 % in August.

Punnose expects lower exports to Saudi Arabia. Reports of stricter inspection in Saudi Arabia due to fear of pesticide residue has also affected the exports.

Saudi Arabia is one of the biggest market for small cardamom from India.

“North Indian demand is good and the pipelines are empty. Traders are only stocking the bare essentials and demand is robust,” he added.

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