Cardamom prices to dip 20% on higher production hopes

Prices of cardamom are expected to slump at least 20 per cent this year owing to higher production and declining demand from export markets.

Today, medium quality cardamom is quoting between Rs 180 and Rs 200 a kg, while lower quality is selling in the range of Rs 180-190.

However, bold quality, 7 mm and 8 mm cardamom "� despite higher estimated production this year "� have gone up by Rs 25 a kg in the last fortnight to Rs 260-270 and Rs 425, respectively.

The scenario, today, is like this: supplies of low and medium quality cardamom are higher and, therefore, prices of these varieties have already started depreciating in spite of the crop having a lean period. But, availability of bold quality, on the other hand, has been almost nil from the opening stock (last year's leftover) of 6,000 tonne.

Besides, the acreage of bold quality, so far this year, is very less. Although the harvesting has just started, the size of cardamom is comparatively much smaller, thereby raising demand for bold quality in the market.

India usually exports only a meagre quantity of good quality cardamom to Saudi Arabia. But last year, the demand from the country was even lower as its imports from Gautemala increased immensely owing to large size and qualitative fragrance of Gautemala cardamom.

With a favourable monsoon and good climatic conditions, domestic cardamom traders expect a 50 per cent upsurge in production this year to 17,000 tonne against 11,000 tonne last year. Spices Board also expects a bumper production at around 16,000 tonne this year in its revised estimated projection. The demand for Indian cardamom is determined mainly by the north Indian market, which consumes maximum. However, the production of this stature cannot be consumed by the north region alone.