Business Daily from THE HINDU group of publications Wednesday, Dec 27, 2006 ePaper |
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Agri-Biz & Commodities
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Spices & Condiments Web Extras - Outlook Drop in yield seen hitting cardamom production G.K. Nair
Kochi , Dec. 26 With drop in yield per acre without any change in production costs, the current average price of cardamom has become unremunerative, according to growers in Kerala and Tamil Nadu. Heavy winds accompanied by heavy downpour during the monsoon damaged plantations in several parts of Kerala. This has adversely affected the crop leading to a drop of 30 per cent in production. The revival of these plants and maintenance of the plantations involves substantial investment, they claim. Last year, if the average yield per acre was 280 kg, it would be less by at least 30 per cent this year raising the cost of production, they said. Given this scenario, an average price of Rs 400 would be remunerative, Mr T. Ashok Kumar, President, Kerala Cardamom Growers Union. Erratic climate is a major problem. During December, "we used to get some showers in the cardamom growing tract. But this year it has failed and it would affect water availability for irrigation". If the dry spell continued, then there would be a further drop in the production, he claimed. Total cardamom output in 2005-06 is estimated at 12,540 tonnes, while that of 2006-07 is projected to be below 10,000 tonnes. The production in 2004-05 was 11,415 tonnes. Meanwhile, production in Guatemala, which used to be around 23,000-25,000 tonnes, is projected to be around 18,000 tonnes this season.
Increasing costs
At the same time, the ever-increasing cost of inputs such as fertilisers, pesticides and fungicides also play a major role in raising the cost of production. Added to this is the increase in labour costs, he said.
Accepting that the average price this season so far has been good, he said that it was encouraging that there had been a stable market for the past over one month.
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