Cardamom export likely to surge on low global output
| ON A HIGH Consumption scenario | |
| Country | Consumption (%) |
| West Asia | 60 |
| Scandinavia | 16 |
| Other EU Countries | 14 |
| USA | 2.5 |
| Japan | 3 |
| Rest | 4.5 |
| Saudi Arabia is single largest importer of cardamom, distantly followed by Kuwait | |
The shortfall in Guatemala's output has also pushed cardamom prices.
India is currently getting fresh orders from Saudi Arabia and other Gulf countries, perking up the prices to Rs 370-390 a kg levels. The prices have appreciated by Rs 20-40 a kg over the past four weeks.
During April-December last year, the country exported 1,285 tonne worth Rs 22.83 crore, against a target of 2,000 tonne. It exported 1,900 tonne valued at Rs 37.60 crore during the last financial year compared with an annualised target of 1,650 tonne. Spices Board sources said there would be 50-60 per cent rise in exports in this financial year, thanks to favourable global market conditions.
At present, Guatemala is also facing a challenge on the quality front owing to unfavourable climatic conditions.
Annually, Guatemala produces 25,000 tonne of cardamom, mostly of 7 mm-plus size that has very good demand worldwide.
The country's average yearly output is around 12,000 tonne. But for the recently ended season, it saw the production drop around 10-15 per cent. This is mainly because of the lower price realisation (average was Rs 270-280 a kg) last season and partly owing to heavy rainfall during April-May 2006.
According to city traders, the domestic market is also having a good time now, as north Indian traders are stocking cardamom.
And this year, the problem of imports from Guatemala is also almost ruled out. The futures market is also on an upbeat mood, as several positive market forces are in action.
On MCX, the February contract rose to Rs 428, the March contract to Rs 475, the April contract to Rs 509 and the May contracts to Rs 532 by noon today. According to growers in Idukki district, this will obviously reflect in spot trading and they expect the average price to cross the Rs 400 mark soon.
During 2001-02 season, because of a shortfall in Guatemala production, the average domestic price had surged to Rs 625 a kg. Farmers are, however, not confident of realising such high prices during this offseason as there are enough stocks with traders as well as growers.
A farmer said the prices might move in the Rs 400-450 range by March-April as next season starts by June.