Cardamom production set to fall 40%

KOCHI: India's cardamom production this year is expected to fall 30-40% compared to 2013, as unfavorable weather likely is keeping the prices high and affecting exports, say producers of the aromatic spice. The extended dry period before the onset of monsoon and the heavy showers in the past two weeks have damaged the crop, they say.

"We estimate the last year crop output to be around 22,000 tonne. In this season, which has been already delayed, the production could come down to 15,000 tonne," said KS Mathew, president of the Cardamom Growers Association.

According to the growers, harvesting might be possible only towards the end of August. In the normal course, the harvest usually starts around June. Carryover stocks, that helped maintain daily auctions this year have almost been exhausted. Fresh supplies are yet to arrive in large quantities.

"The daily arrivals have come down to 25-30 tonne, half the quantity of the corresponding period during the previous year. After three years of surplus, we are now faced with a short fall," said PC Punnoose, general manager of the Kerala Cardamom Processing and Marketing Co-operative Society.

Kerala is the largest producer of the spice in India. The prices, currently hovering at around Rs 800 per kg, may see an upward movement in the coming weeks unless arrivals increase. The August futures, traded at around Rs 930 per kg on the Multi Commodity Exchange (MCX) on August 5 evening. A higher price may impact exports. Although official figures are yet to come, India's cardamom exports in 2013-14 are estimated to be around 2,500 tonne.

"With Ramzan in July, Saudi Arabia bought a good quantity of Indian cardamom in June," said SPGR Nityanandan, partner of SPG Ramasamy Nadar & Sons, a cardamom exporter. Details on export demand will become clear only by September when "we will get to know about the production in Guatemala", he said.

According to him, the Guatemalan production stood at 26,000 tonne last year and the country is expecting a reduced output this year. Since there is no internal consumption, Guatemala may sell the spice at a throwaway price of $8-9 (Rs 488-550) per kg.