Indian cardamom exports are expected to gain significantly in the near term, thanks to drought conditions in Guatemala, one of the largest producers globally.
It is reported that a fall in cardamom production in Guatemala this season will force many Gulf countries to source Indian cardamom, which is superior in quality. The cardamom harvest season in India will start by July end or early August.
PC Punnoose, Managing Director, KCPMC Ltd, said many cardamom-producing areas in Idukki are currently receiving moderate rains, which is expected to boost yields. With rains beginning from May 10, the first capsule can be harvested 90 days later.
No volatility
The auction market is relatively free of volatility, with the average price hovering at ₹2,245 per kg. However, traders are cautious over the price rise beyond ₹2,000 per kg, given the lower production due to drought in Idukki over the past four months. Small and marginal farmers are the mainstay of cardamom cultivation with less than five-acre holdings.
Prince Thomas George, Chairman of the Association of Planters of Kerala, said cardamom prices are expected to rise as the sector witnessed about 30 per cent plant loss from an extended drought and high temperature immediately after the high-density rainfall. Hence, crop loss is expected at 40-50 per cent. If demand remains unchanged from last year, the sector expects prices to increase.
El Nino impact
SB Prabhakar, a farmer in Idukki, said Guatemalan cardamom production is expected to fall to around 25,000 tonnes in the current season due to high temperatures and El Nino-induced drought. Also, the crop is expected to be delayed.
The Indian production is also projected to fall 50 per cent to around 16,000 tonnes in the coming season. However, to fill the gap, Indian cardamom exports are likely to increase from August. “This opportunity needs to be tapped, and if we can export 3,000-5,000 tonnes, prices could increase further,” he said.