Cardamom has begun regaining its aroma with prices moving northwards, thanks to surging upcountry demand ahead of the festival season.

With a 30 per cent jump in demand, the sector is witnessing a revival after the Covid pandemic affected demand over the past two years, with the average price realisation in the auctions hovering at ₹1,100.

According to traders, the finest quality of 8 mm is ruling in the range of ₹1,500-1,800, with North Indian buyers showing interest in capsules. However, traders are adopting a cautious approach in price movement, saying that there were earlier instances when rates dropped after witnessing a jump.

The rising trend can be ascertained only when higher prices sustain for more than a week without showing any fluctuations, a cardamom trader in Vandanmedu in Idukki said. He said procurement for Diwali and Puja are in full swing and the export market was active, with firm enquiries from West Asian countries. All these factors, coupled with lower production in the current harvest, has led prices up, he said.

Average arrivals

Average arrivals in the auctions is in the range of 1 to 1.5 lakh kg per day, which is expected to improve with the arrival of a new harvest.

However, the farming community believes the cost of production is on the higher side, taking into account labour and freight costs, and the increased prices would be beneficial only when farmers get at least ₹1,500 for their produce.

S.B. Prabhakar of Pambadampara Estate in Idukki said cardamom prices have recovered to an average of ₹1,050 due to a drop in auction arrivals in September because of poor rains in June. Prices were ruling lower due to record arrivals over the past seven months. Azhukal or capsule rot has hit plantations hard this season due to incessant rains from June to September. The crop loss is estimated at around 30 per cent and is across the growing tracts.

Pruning investments

With prices prevailing around ₹800 to ₹900 in the last few months, growers have reduced investments, especially inputs, as prices have skyrocketed. This is expected to make a further dent on production.

Arrivals are expected to pick up from mid-October. However, with a reduction in Covid cases and uptick in demand, prices look firm at this point of time. The expansion in area is to be noted, as the sector gets crops from newly planted areas. Export demand is tepid for now as Guatemala is offering their cardamom at lower rates as they do not have any domestic market, Prabahakar said.

Farmers are in distress as they have been hit by a simultaneous fall in the crop and prices this season. The cost of production is around ₹1,300 to ₹1,400 this season, due to a fall in the crop volume, he added

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