Cardamom Export Becomes Sluggish on Supply Crunch

Supply crunch in the market following a price fall has forced the cardamom exporters to go slow on shipments.

Following a spell of summer rains, the cardamom prices fell by Rs 200 to around Rs 1100 per kg prompting the growers to hold the stock.

"We are finding it difficult to source good quality cardamom as the supply has dropped. Consequently we are unable to meet the full demand,’’ said Anjo Jose, executive director of Mas Enterprises, a leading exporter. The Gulf countries are the major buyers of Indian cardamom.

The spice is currently selling around $ 17 per kg in the global market, down from $ 20 a few months ago. Indian cardamom holds an edge over the Guatemalan variety in the international market by virtue of its superior quality, though the latter is cheaper.

Till the entry of Guatemala over a month ago, India used to be the major supplier in the world market. But high prices had hampered the shipments. The prices had escalated to about Rs 1400 per kg, a five-year high on the back of a production shortfall. A delayed start to the harvest season after inadequate monsoon saw the output plunge to 10,000 to 15,000 tonnes, a drop of nearly 50%.

This reflected on the export volumes. The small cardamom exports fell by 22% at 3000 tonnes for nine months to December 2016 from a year earlier. But good price fetched by India saw the value of the shipments rise by 2 % to Rs 307 crore.

The arrivals to the auction centres have thinned. " The growers must be holding on to the stock with the anticipation that the prices will go up again,’’ said P C Mathew, general secretary of Cardamom Growers Association. The cardamom output had touched a record 25,000 to 30,000 tonnes in 2015-16.

Though prices have dropped, the growers are relieved to have summer showers as it will help boost the prospects of the next crop. " With good rains this month, we expect the harvest season to set in by June this year. If we get good showers in the next two months, then it would be a good crop,’’ said P C Punnoose, general manager of Kerala Cardamom Processing and Marketing Cooperative Society. Last year the harvest season started by the end of August.