Cardamom prices hit decade-high
Cardamom is sold in three grades. Traders report that high-quality cardamom is priced at Rs 105,000, scissor-cut (tail-removed) cardamom at Rs 101,000, and regular cardamom at Rs 98,000 per 40 kg.
“This year, cardamom has reached its highest price in the last decade,” said Deepak Nepal, a cardamom trader and central member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). “Prices could rise even further.”
The price last peaked at Rs 105,000 per 40 kg in 2014, followed by a steady decline. Recovery began last year, with prices around Rs 82,000 per 40 kg.
Nirmal Bhattarai, central president of the Cardamom Traders’ Association, predicts a record-breaking year. “Prices are continuously increasing,” Bhattarai said. “This rise is likely due to reduced production, despite strong international demand.”
The highest price on record was in 2010, when cardamom briefly sold for Rs 120,000 per 40 kg.
According to the Mechi Customs Office, 783.75 metric tons of cardamom were exported in the first three months of the current fiscal year (2023-24), significantly lower than the previous year. Harvesting begins in July and concludes by early December.
For farmers in Nepal’s hilly regions, cardamom is a vital income source. It is cultivated in 42 districts, with significant production in Panchthar, Taplejung, Ilam, Sankhuwasabha, Khotang, Bhojpur, and Tehrathum in Koshi Province.
However, production has declined. In Koshi Province, output dropped from 7,763.87 metric tons in the 2022-23 fiscal year to 7,582.02 metric tons in 2023-24. The current year’s data is pending, but estimates suggest a 20 percent reduction.
“Production has fallen sharply due to pests, diseases, and
landslides,” said agricultural technician Keshar Bahadur Magar from
Panchthar. “This year’s harvest will likely be much lower than in
previous years.”
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After a long gap, cardamom average price close to ₹3,000 per kg
Published - November 19, 2024 08:52 pm IST - IDUKKI
After a lull at the beginning of the harvesting period, the cardamom price again showed a positive trend with the average price reaching close to ₹3,000 per kg. According to vendors, major reasons for the price rise are summer drought resulting in production loss in major cardamom production centres in Idukki and the reports hinting at a drop in cardamom production in Guatemala. However, the farmers and planters observed that the price increase will not benefit them much, though they anticipate that the average price of cardamom will touch ₹3,500 per kg soon. During an auction held on Monday by KOKO Spices Private Limited, the highest average price in this season was quoted at ₹2,935 per kg, with a maximum price of ₹3,319 per kg. Of the total of 16,020 kg cardamom which was brought for auction, 15,601 kg was sold. Stany Pothen, chairman of the Cardamom Planters Federation in Vandanmedu, noted that the trend of price increases in the cardamom sector will not much benefit the planters and small-scale farmers. “Due to the summer drought, the cardamom production is expected to dip over 50% as against last crop season. Mostly, beans are collected from the plantations six to seven times during the harvesting period from July to March. But this season, it might get reduced to three in most of the plantations, said Mr. Pothen. “For the past two months, the climate was not favourable for the cardamom farming sector, which has also disrupted growing of new beans,” said Mr. Pothen. Justin Thomas, Secretary of the Kerala Cardamom Dealers Chamber, observed that a rise in export orders is the main reason for the increasing trend of cardamom prices. “The production dip has also contributed to the price hike. Vendors are unable to provide the required quantity of cardamom with selected sizes to meet the export orders,” said Mr. Thomas. According to farmer Thomas Mathew, his plantation was badly hit by drought and snail attacks. “When my plantation was partially overcoming the drought, it was hit by snail attack. Snails destroyed almost all the new beans and flowers of the plants. Currently, I do not have enough product to sell in the market and benefit from the price rise,” said Thomas Mathew. Meanwhile, Shaji Thakidippurath, a cardamom vendor and farmer in Pathumury, expressed hope that the higher price will be an advantage for farmers. “Though there is a dip in production this time, compared to previous years, the price of cardamom has nearly doubled this season. This will help farmers manage the situation,” said Mr. Thakidippurath. The highest ever price of cardamom was recorded on August 3, 2019, at ₹7,000 per kg at the auction held at Puttady.
Published - November 19, 2024 08:52 pm IST
https://www.thehindu.com/news/national/kerala/after-a-long-gap-cardamom-average-price-close-to-3000-per-kg/article68886649.ece
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