Cardamom output to rise 15-20%

Cardamom production will increase by 15-20 per cent and may breach the 12,000-tonne mark in the current fiscal, according to latest estimates of the Spices Board, compared with the 9,000-9500 tonne produced in 2004-05.

Sources said that estimates peg the total production at around 11,000 tonne this season, which could go up if one factors in the good rainfall in all cardamom producing this year.

Prices of cardamom are expected to fall due to increase in production and availability of illegal cardamom imports from Guatemala.

The highest price fetched last week was Rs 412, a kg while in last year it crossed Rs 550. In the beginning of auction sales in this season prices plummeted in anticipation of increase in supply and due to lower offtake from export traders.

Export traders said that overseas demand was very poor but countries from Middle East and Japan have shown interest in Indian cardamom.

The huge price difference between cardamom from India and Guatemala, which acts as a hurdle for export, is also proving to be a damper on the price front. In Indian markets cardamom from Guatemala is available at a price tag of Rs 150-200 a kg while best quality Indian product go for Rs 400.

But growers said that market would pick up within a few weeks as festival demand from North Indian traders will be more by next. month.

They said that good seasonal demand will be there and expect better prices almost at par with last year's price.

In the first quarter 2005, a total of 110 tonne of cardamom valued at Rs 3.67 crore was exported. Total exports in 2004-05 was 650 tonne valued at Rs 23.89 crore, far short of the target of 750 tonne set by teh Spices Board.