| Date: |
19-04-2011 |
| Subject: |
High Local Prices Hit Cardamom Exports |
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High prices in the local market have made Indian cardamom uncompetitive overseas. Top rival Guatemala has regained its market share in the Middle East, the world's biggest market for this fragrant pod.
Guatemala edged out India last year in cardamom exports to the Gulf region by selling $3 to $5 lower than Indian prices per kg. India was a predominant supplier to the global market as Guatemalan production slumped on inclement weather in 2009-10. India exported a record 1,975 tonne during that period.
But the country has managed to ship just 865 tonne in April-February 2010-11. "India was selling at $30 a kg while Guatemalan cardamom went at $25 to $27 per kg in the international market," said leading exporter Nityanandan of SPG Ramaswamy Nadar & Sons . As the domestic prices went below Rs 900 a kg, the growers held on to their stocks expecting better prices. When the supply thinned, Indian cardamom became costly in the global market. Though the prices have rebounded to around Rs 1,000 per kg now, good quality cardamom has become scarce. "We are cautious about shipping second-grade quality. If more good quality cardamom was available, India could have exported at least 500 tonne more," Nityanandan said.
In 2009-10, bulk of the exports happened before the spot cardamom prices went above Rs 1,000 per kg, said PC Punnoose, general manager of Kerala Cardamom Processing and Marketing Co-operative Society (KPMC). The cardamom prices rose to a high of Rs 1,700 per kg before falling to Rs 1,200 early 2011.
The production for the current season is expected to be slightly higher than previous year's 11,000 tonne. Guatemalan production last year was 20,000 tonne, higher than the earlier estimate by nearly 4,000 tonne.
The farmers and traders feel that cardamom prices will stabilise around Rs 1,000 per kg level in the coming weeks as the local demand is good. The futures are showing a firm trend. The May contract in MCX ruled at Rs 1,135 per kg on Monday. Close to 90% of the cardamom production is consumed locally.
Source : economictimes.indiatimes.com
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