The cardamom trade plans to focus more on the Gulf markets as its expects the revival of export demand during the forthcoming Ramadan festival that falls in the middle of May.
As the fasting ahead of Ramadan starts from April 15, export enquiries are coming in for Indian cardamom, especially from Saudi Arabia. Exporters are gearing up to cater to the demand for export quality 7-8 mm grades, currently hovering at ₹1,700-1,900 per kg.
The delay in Guatemala crop due to inclement weather and the spice selling 30 per cent higher than Indian cardamom present a good opportunity for the Indian queen of spices, SB Prabhakar, a planter at Pambadampara Estate in Kerala’s Idukki district told
Pesticide residue concern
The availability of exportable grades is low currently and there is a need to resume exports to Saudi Arabia in the coming season by resolving the pesticide residue issue, he said.
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However, official sources said that since the resumption of cardamom exports to Saudi Arabia in May 2020, shipments are progressing well without any hindrance.
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Pandemic dampens demand
M Dhanavanthan, a cardamom exporter in Tamil Nadu’s Bodinayakanur, said the Ramadan this year is expected to fetch a good demand because of the quality of crop arrivals in India. However, the novel Coronavirus pandemic has dampened enquiries from the Gulf nations, including from the Gulf Food fest.
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Despite price ruling lower in the market, he said the trade is expecting better arrivals this season compared with last year.
With domestic prices ruling lower at ₹1,475 per kg, Prabahakar said a higher demand is expected from local and export markets. The surge in arrivals has depressed prices and the quality of current pickings is low with higher percentage of thrips. The consumption is picking up slowly in the local markets with the easing of cold weather and farmers’ protests losing momentum in New Delhi, he said.
Auction prices down
Growers pointed out that auction prices had plummeted to ₹1,200 following subdued demand after Pongal. It could improve to around ₹1,600 to 1,700 and remain range-bound till the new crop arrives in mid-July. The future direction of prices will be dictated by the arrivals in the auctions and how much the sector could export next season.
PC Punnoose, Chairman, KCPMC Ltd, said production in the coming season looks bright, thanks to better climatic conditions in the growing regions and copious rains till middle of January. This would have an effect on production which would touch 20,000 tonnes against 16,000 tonnes last year.
The tail end of the season has impacted auction arrivals which stood at an average of 100 tonnes per day. However, the prediction of summer rains towards the end of March could help start harvest in the current season by June, he said.