The extension of lockdown to
combat COVID-19 has affected the auctioning of cardamom and uncertainty on the export front post-lockdown has caused a huge stockpile of cardamom in Tamil Nadu's Bodinayakanur in Theni district.
Bodinayakanur, the primary trade centre for cardamom, is also a hotspot for the coronavirus.
The Spices Board suspended the auctioning owing to the pandemic in mid-March putting a stop to all trade activities.
"Year 2020 commenced on a dull note marked by fluctuation in prices. In January, the price of cardamom was nearly Rs. 4,000 to Rs 4,500 per kg in the retail market. But now, it has fallen to Rs. 2,000 to Rs. 2,300. There are no takers at present," said Saravanan, a wholesale dealer in Bodinayakanur.
Auctioneers claimed the stoppage of auctions led to accumulation of stock, leading to cash crunch to growers.
Though a clear picture on losses would emerge post- lockdown, initial estimates by traders reveal that around 800 tonnes of cardamom valued at Rs.200 crore could not be dispensed with due to the suspension of auctions.
According to Muthukumar, a grower, the suspension of auctions has caused confusion over pricing among farmers. He said although the export market is likely to open up by August-September, there could be more stringent measures in the post-coronavirus days.
Uncleared stocks are lying with farmers and traders and only when the pile-up is cleared, could the planters think of investing in new crop, for which the first picking season begins by the end of May or early June.
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