Prices ruling high at Rs 625/kg

After a six-year gap, cardamom price has touched an impressive level of Rs 625 a kg and is set to move further, boosted by slump in domestic production and sharp fall in output of the spice from the world’s biggest producer, Guatemala.

Last week, the highest quality of cardamom (9mm bold) fetched a price as high as Rs 1,000 a kg, while the average price ruled between Rs 600 to Rs 625, market sources said. Last year, the prices ranged between Rs 350 and 400 a kg after opening from Rs 200 and Rs 250.

The Ramzan and Diwali season demands are also helping the price remain high this year. Kerala’s Idukki district accounted for 70 per cent of the the state’s cardamom production, which covers a total area of 4,000 hectares.

 

The prime factor that pushed up the prices was the fall in domestic production on account of scanty rains in blossoming time of June, sources said. “While India produced about 10,000 tonnes in 2007-08, this year it is estimated to come down 7,500 to 8,000 tonnes, according to Idukki District Cardamom Marketing and Processing Society Marketing Manager P Ramachandran.

Due to the fall in production, the Indian growers would have benefited largely this year by tapping the world demand, considering the sharp fall in Guatemalan cardamom output, market sources said.