Cardamom prices up 50% on low output

Cardamom growers are reaping a good harvest as the prices of the commodity have jumped 50 per cent in the last two months due to a decline in the global production. In the Mumbai spot market, the ultra size quality (8mm bold) cardamom was quoted at Rs 1,025-1,040 a kg while the medium (7mm) and common (6mm) varieties were sold at Rs 950 a kg and Rs 900 a kg respectively. The quality of cardamom is determined by its size.

On the Multi Commodity Exchange (MCX), the commodity for delivery in January 2010 surged 48 per cent to Rs 1,104.10 a kg on Monday as compared with Rs 746.70 a kg as on October 29. The three running contracts (January, February and March) of the commodity hit the upper circuit on the MCX on Thursday.

“Supply from Guatemala, world’s largest producer and India’s biggest competitor in export market, declined as traders were holding stocks in anticipation of higher prices,” said Kunal Shah, head, Nirmal Bang, an agri commodities research firm. Over the last three years, Guatemala’s cardamom output has declined significantly to 15,000 tonnes in 2009 as compared to 18,000-20,000 tonnes and 24,000 tonnes in 2008 and 2007 respectively.