Decline in Guatemalan Production Signals Fall in India’s Cardamom Import .

India’s imports of cardamom in the last couple of years has declined from around 25,000 tonnes to less than 20,000 tonnes.

“There has been a sharp decline in the import of cardamom in India from Guatemala, with the figures going to as low as just 95 tonnes last year,” says Roy Joseph, assistant director, statistics, Spices Board India. The Central American country is the world’s biggest producer and exporter of cardamom. It is often known as Guatemala’s “green gold.”

“The reason for this significant fall in imports is the decline in the production of cardamom in Guatemala. This has been because of the climate changes there, which is affecting cardamom plantations,” says Joseph.

In 2008-09, India imported less than a quarter of the cardamom it had imported in the previous year, just 180 tonnes versus 875 tonnes.

“The floods in Guatemala two years back washed out the new crops, and not much of carryover stock was left, because of which production of cardamom there, suffered,” says Nalini Rao, research analyst, Angel Broking.

Cardamom is the second most expensive spice in the word, after saffron. At present, it is priced at Rs 950 per kg in the Indian wholesale market. With the production of cardamom decreasing in Guatemala, the prices in international markets has gone up. The decrease in production has pushed up the price to an exorbitant $30-35 per kg, from $20-21 earlier.

India itself is a major producer and exporter of cardamom. In 2009-10, production climbed to 1,975 tonnes and reached an all-time record in value terms by netting Rs 165.7 crore.

“Although import has declined, India’s production of cardamom has remained steady. South India, especially Kerala and Karnataka, has registered decent production, which is balancing out the declining import as well as its price in the Indian sector,” says Anjani Sinha, managing director and chief executive, National Spot Exchange.

Source : tehelka.com