Labour shortage hits cardamom plantations

30% of the harvest has been lost due to insufficient labour supply

Cardamom prices are rising on a supply crunch. Supply has been affected not because of a shortfall in production, but due to the shortage of workers. Although the output this season has been fairly good, a  major chunk of the produce has been lost for want of workers.

A leading cardamom planter told Business Standard that at least 30 per cent of the harvest had been lost due to insufficient labour supply. Plucking of cardamom is labour-oriented and most plantations are hit by a labour shortage. Sources say for plantations above 10 acres, where the Labour Act is applicable, survival is the hardest part, as wages constitute a  major chunk of running costs. Though prices improved this season, it has not made good the production loss and cost escalation, they noted.

In the light of the ongoing strike in various tea estates in South India, workers of cardamom plantations have also demanded an increase in their daily wage to Rs 500. Currently, it is in the range of Rs 350-400.

According to Reji Njallani, a small farmer in Kerala ‘s Idukki district, it is difficult to continue with the plantation under the current wage structure, as labour cost is almost 60 per cent of the total cost of production.

According to latest  estimates, total production in this season would be 12,000-13,000 tonnes, similar to that of  last season. Market analysts say the rising demand in the spot market and limited arrivals from producing region are likely to keep cardamom prices higher.

According to Reji Njallani, a small scale farmer,  in Idukki district of Kerala  under the current wage structure it is  very difficult to continue with the  plantation as labour cost is almost 60 per cent of the total cost of production.  He said that the government  should protect the interests of the planters while taking decision of enhancing wages. In Kerala,  the Plantation Labour Committee [PLC]   is scheduled to meet on Tuesday in the light of strike in tea  estates.  Last meeting on 26th of this month failed to make a consensus over the wage increase.

According to latest  estimates total production in this season would be  in the  range of 12,000 -13,000 tonnes, almost similar to that of  last season. Market analysts said that there  rising demand in the spot market and limited arrivals from producing region likely to keep  cardamom prices higher. Overseas demand is on the rise  and fairly good  local demand on the anvil  since there is  festival season in the North.  ‘So market is likely to be on a slightly bullish mode for the coming weeks, said Thomas Kuruvilla, an expert.  The  average price  in auction centers was in a range of  Rs 630 -650/Kg.  Growers said that the current price is not attractive as the per Kg cost comes to the tune of Rs 550 – 600.  

Reji told Business Standard that production is likely  to improve further since there is fairly good rainfall in this month. This helped to have fresh off shoots on the plants and plucking   will go  on  in full swing  till the end of October or  first weeks of November.