For the first time since January, the average price of cardamom fell below Rs 1,000 level to Rs 950-970 a kg. A sharp increase in arrivals at various auction centers in Kerala and Tamil Nadu, coupled with strong selling pressure, caused such a steep decline.
In January, the average cardamom price was Rs 1,016 a kg, according to the Spices Board data. Prices went up to Rs 1,513 in June, with the best quality cardamom quoting at Rs 1,750 a kg then. The sudden decline in domestic prices triggered panic selling by the grower fraternity in Idukki district of Kerala. Growers said they had no option but to sell the produce at the prevailing price, as further correction was expected.
Since the harvesting season is at its peak at present, crop arrival at the auction centers is also at the highest levels, and hence, the price depreciation. Market sources told Business Standard that such a decline was never expected, as production had been stagnant for the last two-three years. But, since the local demand for the spice was on a rise, the market expected the average price to be above Rs 1,000 a kg. Cardamom growers want the the Spices Board to come to rescue and announce a floor price for the commodity.
Meanwhile, heavy rain in most of the plantation areas has damaged a lot of crop, which is likely to impact production in the coming months. Fungus infection is also widespread in areas like Vandanmedu, Anavilasam,Udumbanchola and Kattappana. Leading planters said the production would drop around 15 per cent this season. The average cardamom production in India is 13,500 tonnes a year.
