The early onset of the South-West monsoon and continuous rains in the high ranges is posing a threat to cardamom plantations due to the outbreak of fungal diseases and clump rot.
The farming community pointed out that the excess rainfall in May and June coupled with wind damages is reported to be the cause for disease spread. They fear that this may further hit fruit settings and season ahead.
P.C. Punnoose, general manager of the auctioneers KCPMC Ltd said the crop expectation beginning June was normal like last year but the continuing wet spell has delayed the start of the harvest to mid-July or August. Currently, the average price realisation in the auctions was Rs2650 per kg.
Positive factor
However, a positive factor in the market is that the trade channel is clear – right from the farmers to the consuming centres -- with lower inventory of the previous year. This is mainly because of the absence of any accumulated stock due to bad production last year. This, he said, would facilitate fresh crop arrivals in the market with the commencement of the season.
According to S.B. Prabhakar, a cardamom planter in Idukki, the picking season will start around mid-July but more arrivals are expected only by August. There was copious rain in March and April. However the excess rainfall in May and June with wind damage in the plantations has led to fungal diseases. This will lead to a drop of around 10 to 15 per cent from the projected crop. The new crop is expected to be around 30000 tonnes.
As carry forward stocks are less compared to last year, he said prices have started to move higher and could go up by July and then start reducing when more crop hit the market from August.
Guatemala struggles
On the export front, he said Guatemala is still struggling to recoup its production in the absence of rains. India has become competitive in the export market due to dropping prices in Guatemala.
However, the expansion in area within India should keep the market well supplied to meet both export and local demand. There is a good chance to export substantial quantities from August till January of next year. If that happens prices could remain firm, he said.
Upcountry markets are lean with exports emerging as the mainstay of the market. However, there could be price volatility due to global uncertainties or with the arrival of an above normal crop, a trader said.