KOCHI: WIth exports racing towards a new high and the domestic demand remaining strong, the average cardamom prices have surpassed the Rs 1,000 per kg mark for the first time.
The cardamom exports for November 2009 stood at 275 tonne, taking the total exports in the April-November period to 895 tonne compared with 370 tonne in the same period of the previous year. In 2008-09 , the cardamom export was 750 tonne. With another four months to go, the growers and traders feel the exports could register a new record this year, something in the range of 1,500 tonne.
“There was good export demand till the end of December, 2009. The local demand too has been strong,” said PC Punnoose , general manager of Kerala Cardamom Processing and Marketing Cooperative Society (KCPMC).
With world’s largest cardamom producer Guatemala showing a 20% decline in production, there has been a shortage in global market. India is currently the main supplier in the international market . The shortfall in Guatemalan crop has had a positive impact on the domestic demand as well as it has squeezed the imports into India.
The average cardamom prices touched Rs 1,050 per kg on Tuesday after crossing the Rs 1,000 mark in Sunday auctions. The arrivals have been good with 55 tonne coming to the market on Tuesday, the same as that on Sunday. The arrivals for Wednesday auctions are also good, Mr Punnoose said. The January futures prices in MCX are around Rs 1261 per kg while February futures prices stood at Rs 1,234 per kg on Tuesday.
The harvest period is over and the growers are releasing their stock to take advantage of the high price. The upcountry buyers are continuing their purchase fearing a scarcity of the spice in February as the existing stock with the growers could be exhausted. The growers are expecting the prices to move further to 1,200 per kg in the coming weeks with arrivals thinning. A lower production in the current year has also aided the rise in prices.
Source : The Economic Times