The Hindu Business Line : Cardamom loses flavour on oversupply

Signalling the end of the current cardamom harvesting-season, most of the auctioneers have suspended sales for a month. It will now resume in the first half of July.

However, one of the auctioneers would continue with the auction through out the year. The new crop is expected to hit the markets by mid-July, thanks to the prevailing favourable weather conditions in the growing regions.

For the first time in the history of the cardamom auctions, arrivals at the auction centres in Kerala and Tamil Nadu as on June 10 stood at 9,507 tonnes and of which 8,882 tonnes were sold - a record.

The total arrivals and sales during the corresponding period previous year were 5,038 tonnes and 4,693 tonnes respectively.

When the total arrivals at the Karnataka and Wayanad auctions are added the total arrivals during the current season could come to an estimated 12,500 tonnes, trading sources told Business Line.

The oversupply kept the prices throughout the season consistently below remunerative levels. It is evident from the weighted average price of Rs 215.21 a kg during the season against Rs 303.02 in the previous season.

Availability of bold green capsules helped the prices to move up by Rs 20 a kg during the past couple of weeks, they said.

The prices of graded varieties were AGEB Rs 310 - Rs 320, AGB Rs 240 - Rs 250, AGS Rs 210 - Rs 220 and AGS 1 Rs 180 - Rs 190 a kg. Meanwhile, local prices at the Bodinayakannur market on Monday were AGEB Rs 290 - 300, AGB Rs 210 - Rs 220, AGS Rs 190 - Rs 200 and AGS 1 Rs180 - 190 a kg. Bulk was being sold at Rs 210 - 240 a kg.

Mr T. Ashok Kumar, President, Kerala Cardamom Growers Union said that prices of cardamom during the current season were at the lowest levels and this had driven the growers into serious financial crisis. Attributing the downward trend in prices to the imports of cardamom from Guatemala via legal and illegal routes, he appealed to the Union Commerce Ministry to initiate action to arrest this practice in the interest of the Indian growers.

He said that Nepal and Bangladesh had been the transit centre where from Guatemala cardamom was entering India under the Free Trade Agreement with these countries, he alleged.

According to Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company, Kumily, scientific marketing strategy needed to be introduced to push up consumption of the aromatic spice in the overseas markets especially where it does not find a place at present. Besides, its use in the country should also be promoted, he said. Increase in demand would only help improve the prices, he added.

According to trading estimates, the total production during the current season would come to around 13,000 tonnes from a total yielding area of 55,221 hectares out of a total area of 73,237 hectares under the crop.

Household consumption in the country, according to industry sources, is estimated at 6,150 tonnes with an annual growth of 3.7 per cent, while 2,050 tonnes are absorbed by the industry engaged in manufacturing of mouth freshners, ayurvedic drugs, pan masala and curry powders which is said to be growing at 15 per cent a year.

The intake by confectionaries, sweet makers and bakers is estimated at 1,250 tonnes with annual growth of 10 per cent, they said.

If the demand projections were considered true then the indigenous production should fall short of the demand. Notwithstanding, the prices failed to move up, which the growers claimed is because of the imports of cheap cardamom from other origins.

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