Fall in cardamom prices upsets planters

A sudden and heavy fall in the prices of cardamom has upset planters, as the fresh harvesting season is on the anvil. In on Tuesday’s auction, the price of average quality cardamom dropped to Rs 620 a kg from Rs 730 on May 2. The best quality cardamom on Tuesday fetched only Rs 720-800 a kg, compared to Rs 940 last Monday.

The change within a week has come as a serious blow to farmers, as they expected, decent price this time in line with the last season. Increased arrivals to various auction centres well before the fresh season have led to the decline in prices.

According to Idukki-based farmers, unseasonal rain during April caused ripening of cardamom well ahead the season and auction centres are now flooding with fresh and old stock of the spice.

The volume of arrivals at various auction centres has almost doubled within 10-15 days. On an average around 50,000 kg are coming to major auction centres daily.

The sudden steep rise in the supply has terribly upset the price pattern and hopes of growers. Reji Njallani, a leading Kattappana-based farmer said the supply increased due to arrival of old stock, thanks to the panic price change.

Due to propaganda by various agencies, farmers expected a much higher price tag this time and stocked a major chunk of last season’s crop. The market expected a price tag of Rs 2,000 a kg this time. Hence, there was heavy stocking. But once prices began to fall, farmers are in a hurry to clear the old stock as the next season commences by July.

Growers face heavy losses this time on account of the sharp rise in supply, much before the season.

The average price increased to Rs 1,400 a kg last May and the best quality even fetched Rs 1,800. This time growers hitched their hopes on a heavy increase in prices and they expected the average price to even cross Rs 2,000 a kg. A section of traders said the price might even touch Rs 2,500.

But to the dismay of farmers, the market is now facing heavy price crash. A section of growers alleged this was a well orchestrated move by big traders to sabotage the market, with propaganda that prices would cross Rs 2,000.

Cardamom planters of Idukki district said the government should intervene to save the farmers. They urged the government to announce a floor price of Rs 1,500 a kg for cardamom. They convened a meeting in this regard on Tuesday at Kattappana in Idukki district.

A sharp increase in agricultural wages and lowering of working hours is also another shock to farmers. The average daily wage has increased to Rs 350-400 and the working hours have been reduced from eight hours to seven hours at various places.

The increase in the cost of production, coupled with the sudden drop in prices, have added to the woes of cardamom farmers and they now have sought government intervention.