A drought-like condition in some parts of the Idukki district of Kerala, coupled with a shortage of power and chemical fertilisers, may affect cardamom production during the next round of plucking. According to estimates, the total production of the season can be in the range of 7,500-8,000 tonnes, leading to a swelling of prices.
The average price this season has rose to Rs 625 - 635 a kg, and the best quality 7-8 mm bold grade is being traded in the range of Rs 750 -860 a kg. This is the highest price recorded since 2001-02 when the average quote was in the range of Rs 600-650 a kg. In the last season, the average price moved to Rs 350-420 a kg.
Only a few days ago, the best quality 9-mm, hand-picked cardamom fetched Rs 1,000 a kg, the highest tag recorded in this season. The cardamom market is currently poised for the highest-ever bull phase in its history as a host of factors are favouring a smart rally in prices.
Demand from North India is at its peak now, thanks to the Diwali festival, but even in the middle of the harvesting season, there is not sufficient flow of the spice to various auction centres. According to leading growers, this is because of a serious drop in production and absence of carry-over stock in the market. A sharp drop in monsoon is the main reason for the fall in production and in some parts of Idukki district, below-average rainfall led to drought-like condition.
A leading planter of Kottayam said most of the plantations are being irrigated now, which is abnormal during the September-October period. A number of planters have started watering plantations, but the shortage of electricity is hampering this. Kerala is currently facing a serious power-crisis and the state government had imposed 25 per cent power-cut for industries and 30-minute load-shedding in peak hours.
A rise in temperature during the day time may badly affect the flowering of cardamom plants next month and this may lead to a drop in output in the next round of picking. Normally, the harvesting season will extend up to February-March, but this time round, according to farmers, the season is likely to end by December-January.
The district, from where 70 per cent of India’s cardamom production comes, is also facing supply problem with respect to chemical fertilisers like Factamphose. There was an acute shortage of fertilisers in the June-July period as well.
A drop in production in Guatemala, the world’s largest producer of cardamom, is also helping appreciation in domestic prices. Import and smuggling of cardamom from Guatemala is a serious threat to domestic producers, but this time Guatemala is not actively exporting to India due to high rate of import duty. Cross-border trading through Nepal and Bangladesh is also very thin this season, thanks to poor production in these two countries.
Meanwhile, the export of cardamom (large) increased by 41 per cent during the April-August period of the current fiscal at 690 tonnes, valued at Rs 8.21 crore, against 490 tonnes valued at Rs 5.51 crore during the same period last year. The export of cardamom (small) improved by 6 per cent at 175 tonnes valued Rs 10.98 crore as per the latest estimates by the Spices Board.
