Cardamom looks set for a surge

Farmers expect prices to touch Rs 1,000 a kg.

The cardamom prices are poised for an upward rally as production dropped sharply last season. The new year began on a happy note for the growers as average prices crossed Rs 600 a kg.

The farmers are now expecting the market to replicate the trends in 2002, when the best quality cardamom prices touched Rs 1,000 a kg and average prices ruled at Rs 900-925.

Supply to the local auction centres have dried up significantly. The average arrival at KCPMC, Kumily, has dropped to 25 tonnes a day from the around 50 tonnes a couple of months backs. In recent auctions, the best quality, 8 mm grade, fetched Rs 750 a kg and the 7 mm grade cost Rs 630-660.

According to leading growers, the average price might touch Rs 800 within the next few weeks, but for the arrivals from Guatemala. The supply from the South American country will begin by January-February.

According to V Subramanian, president, Indian Cardamom Merchants Welfare Association (ICMWA), major users of cardamom might go for imports, if the domestic prices rose sharply.

"The higher prices will affect the demand for the spice, ultimately bringing down the prices sharply," he added.

K K Devassya, general secretary, Cardamom Growers Association (CGA), said the arrival of cardamom to various auction centres dropped to around 3,500 tonnes during April-December 2007 from 5,550 tonnes in the same period previous year.

"This indicates a significant drop in the production in 2007," he said. The prices would remain bullish until the next production season, he added.