Indian cardamom's flavour drops in overseas markets

KOCHI: A drop in cardamom prices due to summer rains has not benefitted exporters as overseas buyers, particularly Saudi Arabia, have reduced demands. The cardamom exports are likely to fall short by 3,600 tonne over 2013-14.

The average local prices of cardamom dropped from Rs 750 to Rs 900 a kg with the main cardamom growing belt of Idukki in Kerala getting good rains. “The rains have affected the market sentiments. Thinking that the next harvest will be a good one, the growers have released the stock in their hands,“ said P C Punnoose, general manager of Kerala Cardamom Processing and Marketing Co-operative Society.

The cardamom exports, which were doing well till December, have slackened a bit with buyers preferring to wait for the fresh crop. For nine months to December, the cardamom exports showed a 14% rise in quantity and a 21% in crease in value at 2,795 tonne valued at Rs 233.76 crore compared with the same period last year.

“India is currently matching the price of Guatemala at $16 per kg. However, rather than buying old stock, they prefer fresh stock as the harvest season is likely to be early because of rains,“ said KK Saseendra Babu, MD of Vandanmedu Green Gold Cardamom Producer Company.

The quantity of bold size cardamom in the old stock, which is preferred by the main buyer Saudi Arabia, is less. The larger sized cardamom fetches a premium price in the international market.

Earlier, it was predicted that the cardamom production would decline by 20-30% because of inclement weather, to around 16,000 tonne. But the summer rains have rekindled the hopes of the growers and they are expecting a normal produce. The prices are expected to remain around Rs 800 per kg in the short-term.