Cardamom tag to rise 10% on lower output

Cardamom production is likely to be hit by irregular rainfall this year. The impact could reduce this year's output by 25 per cent compared with last year.

In 2005-06, the cardamom production was around 14,500 tonne, which may decline to 11,600 tonne in this year. The expected fall in output, coupled with a trend of rising overseas demand, may push up cardamom prices 10 per cent after August.

During June, cardamom-producing states "� Kerela, Tamil Nadu and Karnataka "� faced a drought kind of situation affecting the crop.

"Because of the irregular rains this year's production is stipulated to be 20-25 per cent less than the production in 2005-06. We are anticipating a rise of Rs 20-30 a kg in the bold variety of cardamom during the festivals," said a Mumbai-based trader. At present, the prices of bold variety are between Rs 230 and Rs 300 a kg, while the prices of medium and short varieties are in the range of Rs 185-200 and Rs 180-190.

Although so far this year's production estimate of the crop has not been carried out, industry sources said the demand and supply situation was going to be tight.

The sources further said despite the slump in production, there could be some augmentation on the export front.

"Exports will not be less than 1,000 tonne as the demand of Indian cardamom is rising in the world markets, especially in Arabian countries," said a market source.

Last year, exports stood between 900 tonne and 950 tonne. Domestic cardamom consumption is pegged at 12,000 tonne a year, while the carry-over from the last year production is 1,500 tonne.

"This means", the source added, " the stock will continue till August and after that there will be a rise in prices". As the Indian variety has an edge over Guatemala's cardamom and has proved competent enough in the international market, the demand is all set to go up.

During the last financial year, while the acreage under cardamom cultivation in Tamil Nadu and Karnataka saw a combined increase of 81 hectares, Kerela registered a decline of 11 hectares in acreage.