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Bid to boost exports to W.Asia — Spices Board to market value-added cardamom

G.K. Nair

Kochi , June 20

THE Spices Board, in a bid to boost export of cardamom to the West Asian countries, considered a major market for the commodity, is planning to conduct a market study in this region for selling branded Indian cardamom.

A consultant would be selected from the bidders soon for taking up the study, Mr C.J. Jose, Chairman, Spices Board, told Business Line on Monday. He said that India was once the main supplier of cardamom to the West Asian markets, especially Saudi Arabia until the entry of other producers.

Guatemala, the world's major producer of cardamom, has been offering at lower prices in these markets and this had made the Indian produce uncompetitive in terms of value, despite being qualitatively superior.

They were selling at $2 to $4 less than the Indian price and this has made our penetration difficult. "Given this scenario, competition is only possible now with value-added cardamom under Indian brands," Mr Jose pointed out.

Based on the recommendations of the consultants the Board would start a marketing campaign for promoting value-added branded Indian cardamom in consumer packs in these countries through retail outlets, he said.

Cardamom exports to Saudi Arabia in 2000-01 were 496.10 tonne valued at Rs 33.30 crore. It was 356.21 tonne valued at Rs 18.44 crore in 2003-04 and has declined further in subsequent years.

Similarly, exports to Oman also fell from 33.04 tonne in 2000-01 to 6.97 tonne in 2003-04. Availability of cheap cardamom from other origin is said to be responsible for this decline in Indian exports.

The country, which has a record of exporting up to 3,272 tonne of cardamom in 1985-86 and over 2,300 tonne in late 1970s and 1980s, could export only 650 tonne valued at Rs 23.90 crore in 2004-05 as against 757 tonne worth Rs 36.92 crore in the previous fiscal.

In the past, exports of cardamom dropped only when there was a crop failure in the country. But, it has changed now and the total cardamom production in the country has been almost stable at over 11,000 tonne since 2001-02.

The situation now demands that the country should market value-added cardamom under Indian brand in these markets so as to be competitive and to regain its share in West Asia, he said.

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Bid to boost exports to W.Asia — Spices Board to market value-added cardamom


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