Wednesday, Jul 15
By S. Anirudh Iyer
NEW DELHI – Cardamom crop from the 2020-21 (Jul-Jun) season has started arriving at the auction centres in Idukki district, a major grower of the spice in Kerala, said traders.
"The crop has started hitting the markets on time without any delay, but the quantity of the crop entering the market is low as compared to arrivals during the peak months of Aug-Sep," said Jojan Malayil, a Kerala-based trader.
At present, 50 tn of the new crop is entering markets for the daily spot auctions. The arrivals are expected to more than double in the peak season starting August. The moisture content in the new crop is at the standard level of 8%, traders said.
Traders see cardamom output in 2020-21 at 22,000-23,000 tn, against 16,000 tn in 2019-20. The Spices Board of India has pegged the country's 2019-20 output at a much lower 11,230 tn.
"A higher estimated production and tepid demand due to the virulent pandemic is likely to lead to a fall in prices to around 1,000 rupees during the peak picking season," said Nishanth Varghese, manager-operations at Kochi-based Kancor Ingredients Ltd.
Currently, the average price of small cardamom at the auctions is 1,500-1,600 rupees per kg.
Though the overall outlook for the commodity is seen bearish, there is a likelihood that unfavourable weather conditions such as higher-than-expected rainfall may impact supply during the peak season, which will help provide a floor to prices, traders said.
Edited by Ashish Shirke
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