Scanty rainfall hits cardamom production, prices set to spiral to record levels

 

As prices of cardamom rise, India is in danger of losing its export markets to the cheaper Guatemalan cardamom. Even the upcoming festive season may not help its cause as higher prices may impact the price-sensitive domestic market as well.

AUGUST 16, 2023

Cardamom prices are spiraling to record levels as severely deficient rainfall wreaks havoc in Idukki district in Kerala, where most of the country’s cardamom is grown.

The average prices have doubled to around Rs 2,000 per kg from a couple of months ago. The maximum price for the premium quality has jumped to about Rs 3,000 per kg. It is reminiscent of the situation four years ago when average prices crossed Rs 4,000 per kg and the maximum price escalated to Rs 7,000 per kg when the south-west monsoon rains played truant.

Rainfall is said to be short by 30 to 50 percent so far in different parts of Idukki district, the hub of cardamom cultivation. ``The harvest began towards the end of last month and the production looks to be 30 to 40 percent short because of poor rainfall from June. If it rains towards the end of this month or in September, we may get some good crop by December, but the current damage cannot be set right,’’ said K K Saseendra Babu, MD of Vandanmedu Green Gold Cardamom Producer Co. Ltd.

He reckons that the total cardamom production in the country could drop to around 15,000 tonnes from 25,000 tonnes last year. Lower carryover stock has also contributed to the price rally.

At present consumption is weak and given the current prices it remains to be seen whether it will pick up with the onset of festival season after September. The maximum domestic sale usually happens during the Durga pooja-Diwali season. Subdued demand may limit the rise of cardamom prices till the festival season begins.

`The pattern of consumption has changed after the Covid pandemic. The market has become price sensitive, and the demand is for cheaper, lower quality cardamom. The total annual domestic consumption could have fallen to 25,000 tonnes from around 35,000 tonnes,’’ Babu said.

Though the prices are at remunerative levels for the growers, they cannot take advantage of it as most of them are left with hardly any stock. Since the prices hit record levels in 2019, cardamom cultivation has spread to more areas in Idukki district as well as in Tamil Nadu. The curry masala makers, who go for bulk quantities, bought some quantity when it was cheaper.

In the last three years cardamom prices have been averaging around Rs 1,000 per kg. Given the rise in the production cost, the growers can reap benefits only if the prices go above Rs 1,200 per kg.

``Apart from the decline in consumption there is also the risk of Guatemalan cardamom entering the Indian market towards the end of the year, which could impact domestic prices’’ pointed out P C Punnoose, CEO of Kerala Cardamom Processing & Marketing Co. Ltd. Gautemala is the biggest cardamom producer in the world and last year the country’s production was higher at around 45,000 tonnes, which helped it to dominate the export market.

Guatemalan harvest usually begins around October.

India’s export of cardamom too declined last year owing to the onslaught of Guatemalan cardamom. Cardamom exports in 2022-23 showed a 30 percent slump in quantity to 7,352 tonnes and a 36 percent drop in earnings year-on-year to Rs 875 crore. In 2021-22, cardamom export had reached a new peak of 10,572 tonnes valued at Rs 1,375 crore.

Importers in Kuwait and Saudi Arabia are asking why India has suddenly increased the price. The prices are around $ 31 per kg. Even at $19 per kg earlier, we were not finding too many takers in the world market,’’ said Nithyanandan, partner of SPG Ramaswamy Nadar and Sons, a leading exporter.

Once Guatemala enters the world market after October, it will be able to sell at a cheaper rate than India. Thus, India could end up losing the Gulf market, the largest buyers of cardamom, to Guatemala.

Further, failure of monsoon rains could push cardamom prices to a higher level, hitting both domestic consumption and export.

PK KRISHNAKUMAR is a journalist based in Kochi.

https://www.moneycontrol.com/news/economy/agriculture/scanty-rainfall-hits-cardamom-production-prices-set-to-spiral-to-record-levels-11197301.html

Cardamom prices soar on deficient monsoon, crop shortage

 

August 10, 2023 

After black pepper, it is now the turn of cardamom to witness a price surge reportedly on speculative buying. The rates soared to ₹2,250 per kg in the Puttady auction centre in Kerala without bringing any benefits to the farming community due to crop shortage.

After Covid-19, the cardamom market has been witnessing a reverse trend with prices plummeting to below ₹1,000, prompting farmers to neglect the crop because of rising production cost. It was in August 2019 that prices touched a record high of ₹7,000.

PC Punnoose, managing director of CPMCS Ltd. at Kumily, cited the delayed and deficient monsoon, especially in the growing belt of Kerala’s Idukki, as the reason for prices to move up. May and June are considered as the time for surplus rains, but hardly any showers during the period, instead a dry spell which led to heavy droppings in plantations and it impacted production.

Delayed plucking

Normally, it would take 90 days for the flowers to mature, but deficient rains in this season has hit plant settings and it resulted in delayed plucking. The first round of harvest was over by July-end and the next round will all depend on a conducive weather.

It looks like climate change and weather is going to dictate the direction of the market. With El Nino strengthening, we may not see rains from December of 2023 till April 2024 contributing to further reduction in crop and increase in prices”, said SB Prabhakar, a cardamom planter in Idukki.

The growing tracts have received a deficit of 70 per cent in June, 25 per cent in July and around 40 per cent till date in August. As the South-West monsoon is the main flowering months, the overall crop is expected to drop 25-30 per cent at a minimum in the current season.

Speculative buying on

If there is a deficit again in this period, it will lead to a further reduction in crop and an increase in prices up to ₹3000 level. If rains become bountiful later in August and September, he said, adding that prices should stabilise at around ₹2,000-2,300 levels.

However, trading sources said the market is witnessing speculative buying mainly from Kerala traders in anticipation of a further price hike. The offered quantities in auction centre are on an average 100 tonnes per day.

The consuming centres in the Gulf markets and upcountry are hardly having any stocks and they are all waiting for the raw material. But the crop shortage and rising prices is hitting them hard, especially with the festival season is around.

Cardamom prices soar on deficient monsoon, crop shortage - The Hindu BusinessLine

KERALA - Market in stupor as pepper prices rise; Indian variety most expensive

 

Kochi: The price of pepper increased by Rs 30 per kilo within a day. In other words, the price per quintal went up by Rs 3000. 

This sudden and unexpected rise has created a shock in the market. Last week, the price had increased by Rs 20 per kilo

The price of ungarbled pepper is Rs 550 per kilo on Monday while garbled pepper stands at Rs 570 per kilo.  

Traders in Kerala point out the intervention of North Indian lobby as the reason for this price hike. 

They say that this is the same trading lobby that intervened to increase the price of commodities like cumin and turmeric.

Unpredictable weather changes can detrimentally affect production. 

There were campaigns that claimed pepper production would drastically reduce next year. 

This is what prompted masala manufacturing companies to procure and horde large quantities of pepper.

Some prominent companies also invited tenders to meet the chilly requirement for the next few months. 

The lobby has anticipated a demand for pepper in the near future and this intervention led to a rise in prices, traders say.

Kerala farmers continue to maintain a distance from the market. 

Those who have pepper stock in hand are not bringing the goods into the market hoping the prices may increase even more. 

With festival season coming, they anticipate a further rise in price.

Presently, Indian pepper is the most expensive in the International market. 

As per latest records, the price of Indian pepper is at 7,300 dollars per ton. Meanwhile, the price of Brazilian pepper is only 3,500 dollars per ton.

Similarly, the Vietnamese and Indonesian peppers are priced at 3,600 and 2,800 dollars per ton respectively. 

Exports from India have been on the decline for some time now but imports from Brazil and Vietnam are subject to heavy tariffs. However, even after considering this tariff, pepper from other countries have a lower price in the market than Indian pepper. 

The trade community indicates that if prices continue to rise, it will pave the way for imports.

V.P Sreelan 25 July 2023, 12:10 PM IST.

Read more at: https://english.mathrubhumi.com/news/money/market-in-stupor-as-pepper-prices-rise-indian-pepper-the-most-expensive-in-international-market-1.8760376

Cardamom prices fall on weak demand, exports may receive a boost

Cardamom prices are down from around Rs 1,000 per kg to Rs 750 to 850 per kg. The market expects the rates to decline further with a new harvest season round the corner

 PK KRISHNAKUMAR JUNE 14, 2022 / 06:33 PM IST

Robust production and tepid demand have caused prices of cardamom to decline, raising concern among growers. Small cardamom prices have fallen by over 20 percent in the last few weeks.

As cardamom growers fret over the plummeting prices, exporters reckon the low prices will boost India’s competitive edge in the global market and help them to match the record shipments of the last financial year.

Weak demand, both in the domestic market and overseas, has pushed down the cardamom prices from around Rs 1,000 per kg to Rs 750 to 850 per kg. The market expects the rates to decline further with a new harvest season round the corner.

Exports of the spice fetched all-time-high volumes and earnings in 2021-22, according to the latest figures of the Spices Board. The country exported 10,572 tonnes of cardamom worth Rs 1,375.70 crore in the year. The volumes were higher by 63 percent and value by 25 percent over the previous year.

UAE overtakes Saudi Arabia

The record exports were achieved despite Saudi Arabia imposing stringent rules on pesticide residues. Until a couple of years ago, Saudi Arabia used to be the biggest buyer of Indian cardamom. The United Arab Emirates (UAE) has now overtaken Saudi Arabia in cardamom purchases.

According to the available statistics for 2020-21, the UAE purchased 1,724 tonnes of Indian cardamom compared to 842 tonnes by Saudi Arabia.

“The exports have spread to many other countries. Besides other Gulf countries, Bangladesh has also emerged as a big buyer,’’ said Anjo Jose, executive director of Mas Enterprises, a major exporter.

Even going by the 2020-21 data, exports to countries like the US, Kuwait, Bangladesh, Canada, Singapore and Qatar have increased significantly over the previous year. This is expected to go up further in FY22 as shipments have risen sharply.

Competition from Guatemala

Although cardamom from Gautemala, the largest producer of the spice, is cheaper than the Indian variety, many buyers are going for the superior quality of the latter.

“Buyers have come to recognize the premium quality of Alleppey green bold cardamom. Indian cardamom at $14-15 per kg is around $3 higher than the Gautemalan variety,” said Hemen Ruparel, chief executive of Samex Agency, another exporter.

But presently there is a shortage of good quality export cardamom in the Indian market, which has led to the dominance of Guatemalan cardamom in global trade.

“Exporters are waiting to buy fresh stock in the new harvest season, which is expected to be in full swing by July-August,’’ Jose said.

Growers complain that climate vagaries are affecting the production quality of cardamom, grown mostly in Kerala and a few regions of Tamil Nadu and Karnataka.

“Pest menace has gone up. The chemicals we had used earlier are banned now and the new ones that are approved are not effective in controlling it. As a result, the quality of production is coming down,” said K S Mathew, a major grower.

Production in 2021-22 is estimated at over 25,000 tonnes compared to 22,520 tonnes in the previous year. The surplus production has come from new growers and non-traditional areas.

“While the big estates get hardly 300 kg an acre, the small ones are able to get almost double the quantity,” said M M Lambodharan, general secretary of the Spices Planters Association.

Weak demand from the North Indian markets and with exporters waiting for the new season, cardamom prices have become non-remunerative for the growers.

“The growers need Rs 1,200 per kg to break even considering the increasing cost of fertilizer and pesticides. Though the growing regions received copious rains in May, extreme heat this month is causing the plants to wilt. At this rate, the crop could be short by 40 percent in the next harvest," Lambodharan said.

Earlier during the year, when cardamom prices fell below Rs 800 per kg, the Spices Board implemented new steps restricting the total quantity per auction for a licensed auctioneer to 65 tonnes.

Of this, growers were allowed 70 percent of the share while the quota for licensed dealers was limited to 30 percent. This was to check the re-pooling of cardamom by dealers at auctions, which the growers said was leading to a price fall. But that was in force only for over a month and was relaxed when the prices rallied.

PK KRISHNAKUMAR is a journalist based in Kochi.

-

https://www.moneycontrol.com/news/business/cardamom-prices-fall-on-weak-demand-exports-may-receive-a-boost-8686031.html

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IPC PEPPER REPORT No. 33/20, 10 - 14 August 2020

 

LOCAL MARKET

Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to previous week at an average of USD 4,199 per Mt. Indonesia black pepper was reported with 4% deficit as compared to the previous week at an average of USD 2,026 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,478 per Mt. The decrease of Indonesia black pepper price could be contributed to the harvest season currently ongoing, thus, pushing down the local price. Malaysia black and white peppers in local market were reported stable with a marginal increase at an average of USD 2,387 per Mt for black pepper and USD 3,754 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% and 5% respectively when compared to the previous week averaging at USD 1,995 per Mt for black pepper and USD 2,829 per Mt for white pepper. Sr i Lanka black pepper was reported with an increase of 1% as compared to the previous week and was traded at an average of USD 2,864 per Mt.

INTERNATIONAL MARKET

International market also showed a mixed response as only India origin was reported with an increase. India black pepper was reported with the same increase of 1% when compared to the previous week at an average of USD 4,466 per Mt. Indonesia black pepper was reported with 4% deficit when compared to the previous week at an average of USD 2,472 per Mt whilst Indonesia white pepper was reported steady averaging at USD 4,098 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with a marginal increase averaging at USD 2,430 per Mt, USD 2,511 per Mt and USD 3,950 per Mt respectively. 

 

 

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GLOBAL PEPPER PRICES ON AN UPWARD TREND

 
Kochi  August 12, 2020

Pepper prices have started moving up globally, thanks to increased buying activities in the international markets.

Sri Lankan pepper prices was up by $400 per tonne, touching $3300-3500, while the rates of Vietnam, Indonesia and Brazil are also reporting an increase of $300-400 per tonne. Overall, there is a surge in procurement globally, said Kishore Shamji of Kishor Spices.
The Indian domestic market is also reported to be active in view of the ensuing festival demand. All sections of the trade are in a mood to cover their requirements as they are not expecting any downward price trend in the near future, he said.

The Kochi market was up by ₹1 per kg at Rs315 per kg for ungarbled on Wednesday and the farming community appears to be holding the crop, anticipating a further rise in prices, Shamji said. This is evident from the arrivals in the market, which was only at seven tonnes. The prices of Karnataka pepper are reported to be higher than Kerala due to good demand for bolder berries.

Moreover, heavy rains and landslides in the high ranges has hampered truck movement, bringing pepper to the market. Since the market is witnessing a good demand, he said the prices are expected to go up.

IPSTA Black pepper rates.
MG1 – ₹335 ; UNG-₹315 ; 500 G/L – ₹305 ; Arrival/Off-take – 7 tonnes

* Today:
1 USD = 74.8315 INR


V.Sajeev Kumar  for
Thehindubusinessline.com

 

 

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Cardamom's aroma to fade away as prices may fall 25%

Thursday, Jul 9

NEW DELHI/MUMBAI – Cardamom has been a favourite of traders up until now as it has been fetching higher prices ever since the heavy rainfall and flood in Kerala two years ago. But now with likely higher production and the COVID-19 pandemic hitting demand, cardamom growers are starting to get worried as prices are expected to fall by 25-30%.

The floods in August 2018 swept away a large chunk of cardamom plantations in Kerala, driving average prices up to a record high of 4,733 rupees per kg at the spot auctions that year. A year later, prices skyrocketed to a high of 7,000 rupees. Since then, prices have remained in a range of 1,500-3,800 rupees, against the normal range of 900-1,100 rupees.

Currently, the average price of small cardamom at the auctions is 1,500-1,600 rupees per kg.

"A higher estimated production for 2020-21 (Jul-Jun) 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.

Traders see cardamom production in the next season at 22,000-23,000 tn, against 16,000 tn in 2019-20. However, the Spices Board of India has pegged the country's 2019-20 output at a much lower 11,230 tn.

"Major consuming centres like Delhi, Kanpur, Mumbai and Tamil Nadu are badly affected by COVID-19 so consumer demand is less. The overall consumption has also fallen because of low spending capacity, not everyone can afford it nor is it an essential item," said P.C. Punnose, chief executive officer of The Cardamom Planters Marketing Cooperative Society.

During the lockdown period, 70-75% of traders lost considerable amount of money. They had stocked up in anticipation of a further rise in prices but the pandemic has unfortunately prolonged, said Punnose.

On the trade front, buyers are in a wait-and-watch mode before making bulk purchases, fearing lower returns.

"...market players do not want to invest because the level of uncertainty following the COVID-19 outbreak is very high... prices are expected to be around 1,200 rupees in coming months," said Hemen Ruparel of Mumbai-based exporter Samex India Pvt Ltd.

Though the overall outlook for the commodity is seen bearish, likely fall in supply during the peak season and any adverse weather in the coming months would stabilise the prices, traders said.

Even though the crop condition looks good so far, fear of excess and continuous rains over the coming months may have a negative impact on the crop which is near its picking period, and this may lead to downgrade of qualitative and quantitative estimates, said Varghese.

Currently, the first round of picking has started in Kerala and new crop of cardamom is arriving in small quantities at auctions. The quantity will increase in August and the second round of picking will start in September.

"Rains have just started two days ago. It's late by over a month. Cardamom needs rain... it's the main important factor. Dams, rivers are not getting filled. We genuinely have to wait till August to be sure. Crop is expected to be good but again if heavy rains occur, there will be damage," said Anjo T. Jose, executive director of Mas Enterprises.

After markets reopened and auctions resumed, stockists started offloading old stocks and are holding only 15-20% of carryover stocks from the previous season.

Although traders have made space for the new season's crop, they will also look for opportunities to make the most of a good turn in prices, if that happens.

"If prices fall more and there is some unexpected weather adversity, then we will hold stocks and wait for prices to rise," said Joseph Kattakkayam, a grower based in south India.

Being a labour-intensive crop, movement of migrant labourers to their hometowns has become another cause of headache for planters. Labourers from Tamil Nadu might also not come due to inter-state travel restrictions. This may lead to restricted arrivals during Aug-Sep, the peak harvest season, traders said.

On the flip side, this could be good news for consumers, especially for lower income households, as the aromatic spice may finally become affordable this festival season. 

By Preeti Bhagat and Kavita Desai
Edited by Maheswaran Parameswaran
http://www.cogencis.com

------------------------------------

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*

Moisture content drags down pepper prices in Kochi

---

June 29, 2020
Pepper prices were down by ₹2 per kg in Kochi on Monday following the availability of higher moisture content pepper due to the present climatic conditions. The prices were at ₹310/kg on an off-take of 30 tonnes.
Kishore Shamji of Kishor Spices said that there are more sellers from Wayanad and Coorg for lower bulk density pepper, which, in turn, is influencing Idukki dealers as well to reduce the price. The domestic demand continues to be steady except from cities of Chennai, Mumbai, Delhi, Ahmedabad where the demand has slowed down.
According to him, the pressure from Sri Lankan exporters for dumping their produce in India overcoming the MIP restrictions fixed by the Government is still continuing. The absence of required action from authorities have forced more importers to go ahead with such shipments, violating the rules.
IPSTA Kochi black pepper rates (₹/kg): MG1-330; ungarbled-310; 500 G/L-300.

 


V Sajeev Kumar for
thehindubusinessline.com 

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INDIAN PEPPER PRICES MAY MOVE UP ON GLOBAL TREND

 June 05, 2020

 China’s increased buying has pushed up the global pepper prices, especially in Vietnam and Indonesia, while the rates in India have seen only a marginal improvement. Domestic growers, who have not benefited from the global price trend are hoping to see higher realisations on the anticipated pick-up in demand with the easing of the lockdown.

Prices have registered double-digit increases in Vietnam and Indonesia over the past one month, while in India it went up by 1.8 per cent. According to the International Pepper Community, Vietnam prices rose 18.54 per cent at $2621 per tonne on June 4 from $2211 in May 4. Likewise, Indonesian prices also posted 14.12 per cent increase from $2088 to $2383. However, Indian prices witnessed only a marginal rise at 1.8 per cent from $4,354 to $4,434. “So far, the Indian growers have not really benefited from the recent global price rise. However, we are hoping that prices would move up in the next few weeks with a likely pick-up in demand from North India after the easing of lockdown,” said MC Kariappa, Chairman of Kodagu Planters Association. Farm gate prices have moved up from around ₹290-300 levels two months ago to around ₹315-317 per kg.

High production cost

Kishore Shamji, Coordinator of Indian Pepper, Spice Traders, Growers Consortium-Kerala Chapter, said the Indian prices, which is hovering above $4,000, is already on the higher side due to high domestic demand equivalent to production. The higher prices have benefited farmers, but the high production cost is posing a problem. The cost of production can be reduced by improving productivity.

India is expecting 60,000 tonnes of production as against 55,000 tonnes last year. It is the intrinsic value of Indian pepper that brought selected buyers from the US, Canada, and Europe, who have special preference for Malabar Black Pepper or Tellicherry Garbled Extra Bold or Malabar Tellicherry Special Extra Bold, he added.

“It cannot be said that the prices of low quality pepper are rising in the international market. The prices that have dropped to $1,800 are now recovering as China becomes active and starts buying as much as the US does,” Shamji said.
However, the high piperine content of Sri Lankan pepper, which is above 10 per cent, has made the commodity from the island nation a preferred choice for the spices extraction industry after paying a premium price.

Price rise in Vietnam

Prakash Namboothiri, former president of All India Spices Exporters Forum, noted that the Vietnam pepper prices have witnessed a spike due to high buying from China and other markets because of a jump in business activities in the post-Covid situation. The Indian prices are already at 50-60 per cent higher levels than Vietnam. However, there has been a decent pick-up in Indian prices in the last couple of days.
According to him, the global pepper market last week saw some fluctuations as some speculators booked profits when the price has reached the expectation. However, the price has still increased 13.4 per cent within a week from May 25 to 31. Indian prices when compared to other origins are already 50-60 per cent higher to similar grades. India needs to work on reducing the cost of production to ensure the farmers to make more profits which should be the end benefit, he said.

Rosy outlook

An expert in the pepper sector said the absence of a domestic market has forced farmers in Vietnam and Indonesia to depend on international markets for sale at cheaper prices. The market for Indian pepper is mainly dependent on domestic demand, which is always constant. Since Indian prices are on the higher side, international buyers look for low-priced pepper. The pick-up in domestic demand is also likely to result in the inflow of pepper from countries such as Nepal and Sri Lanka.

However, the future of spices looks rosy as commodities such as pepper, ginger, and turmeric find application in immune therapy.




V Sajeev Kumar/Vishwanath Kulkarni Kochi/Bengaluru
https://www.thehindubusinessline.com/

Corona takes the sheen out of cardamom growers

Thiruvananthapuram, April 22 (IANS)

Kerala which leads the country with a giant share of 89 per cent of the total production of cardamom, is finding its growers in a difficult situation. The cardamom growers are reeling as COVID-19 has hit them very hard.
The growers sell their produce by participating in the auction, held at Bodinayakkanur in the Theni district of Tamil Nadu, which lies close to the Thekkady tourist location in the Idukki district in Kerala.
In Kerala, Idukki is the home of cardamom growers who own large and small holdings and the total area under cardamom cultivation is around 38,000 hectares.
Though there is an auction centre at Vandanmeddu in Idukki district, the auction centre in Bodinayakkanur is the single most popular centre, as far as the cardamom auction is concerned.
Speaking to IANS, Sunny Mathew, executive member of the Cardamom Growers Association said things are bleak and getting bad.
"Ours is a product which fetches the highest price when the colour of the cardamom is best and fresh. Any delay in getting the product out of our farms spells danger. Sadly it''s been a month now as the premier auction centre is closed. We have never ever had such a long delay and it comes at a time when the prices were looking bright," said Mathew, a grower and also an exporter.
Cardamom from Kerala farms is auctioned and it goes to north India and for exports.
The peak market for this high quality and popular spice, used for baking and cooking purpose across the globe, begins when the yield is taken from September and tapers in January.
"This time the production has come down from 28,000 tones, last year to around 18,000 tones. When production comes down, the price rises and in January this year a kilogram of cardamom touched Rs 3,000 and when the lockdown began it was around Rs 2,300," said Mathew.
With Bodinayakkanur now declared as a hotspot for Covid-19, things are going to be bad and it would prevent auctioneers and their agents to arrive there.
"We want the government to come to our support. The Spices Board should take our products and based on our cost of production, they should lift our stock. If it does not happen, then the production would be seriously affected this year, as we do not have funds to invest. Also liberal moratoriums with regards to interest waiver and repayment also should be there," said Mathew.
--IANS
sg/dpb

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# CARDAMOM INDIA - Kerala With no auction, cardamom piles up

IDUKKI, April 03, 2020 23:23 IS

 

Sector faces uncertainty as crop prices are decided at auctions

The cardamom sector is facing a deadlock in the absence of auctions, with the main buyers in Mumbai abstaining from taking new orders for nearly a month. The produce is held up with farmers and small-scale traders, K.S. Mathew, director, Vandanmedu Green Gold Cardamom Producer Co. Ltd., told The Hindu on Friday.

There are 12 auctioneers at the Spices Park at Puttady under the Spices Board of India. As per the licensing agreement, the auctioneer has to pay the farmer the price of cardamom within 10 days of the auction. The traders and industrial units that purchase the produce have to pay the auctioneer the price within 21 days. The mechanism was going on unhindered with the daily auctions, he said.

Cardamom’s price is decided at the auctions, without which there is total uncertainty. The price would be known only when the auctions restart, Mr. Mathew said.

Last price

It is estimated that the traders have to pay the auctioneers more than ₹200 crore for the last two to four consignments in the auctions. When the auctions were stopped following the COVID-19 scare the price was at ₹3,500 per kg.

Marketing sources said prices could dip as the next crop, predicted to be a bumper one, is set to arrive in the market by June/July, and a major quantity produced in the last season has remained unsold. Moreover, the crop’s export prospects will depend on the stance of Saudi Arabia, the main buyer, sources said.

No buyers

The last harvesting season witnessed the highest ever prices quoted in the auctions, reaching up to ₹9,000 per kg.

The absence of trading has affected not only the plantations but also small-scale farmers. Lalichan, a farmer in Peerumade, said there were no buyers with small-scale hill produce merchants ceasing to buy cardamom. A trader had agreed to take the produce without making payment now. A meagre price was offered.
“How can one sell the produce without knowing the price and without being paid,” he added.

Giji K. Raman for
https://www.thehindu.com/news/national/kerala

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INDIA - Spice industry faces huge crisis after suspension of exports in wake of COVID-19

While Gulf countries had already suspended cardamom import, the export of cardamom, pepper and other spices has now been temporarily suspended due to coronavirus fears.

Even as the COVID-19 pandemic spreads across the globe and India has announced a nation-wide lockdown, the spice industry is facing a huge setback. Farmers and traders are facing an enormous crisis after the export of cardamom, pepper and other spices was temporarily suspended due to coronavirus fears.

Last week the Spices Board suspended the cardamom e-auctions scheduled at e-auction centres at Bodinayakanur in Tamil Nadu and Puttady in Kerala with immediate effect until March 31. This has only added to the farmers’ woes. Within a week, the price of cardamom dropped by more than Rs 1,000 per kg. Till the last week of January, the price of cardamom was nearly Rs 4,000 to 4,500 per kg in the retail market. But now it fallen to Rs 2,000 to Rs 2,300. Pepper prices also fell to Rs 290 from Rs 330 per kg. Vendors are also not willing to buy spices such as cardamom, pepper and coffee from farmers.

Johny Joseph Vattathara, who runs Spice More Trading Company in Kumily in Kerala’s Idukki which trades in black pepper, cinnamon, cardamom and coffee, said that the COVID-19 pandemic has severely affected the spices trading and market. “Cardamom is mainly exported to Gulf countries. When COVID-19 started spreading across the world, the Gulf countries temporarily suspended cardamom import from other countries. We lost many export orders from the Gulf, presently we have no idea when the issue will be resolved,” he said.

Cardamom is firstly bought by vendors from Tamil Nadu and they export the product to other countries including the Gulf. But after the coronavirus scare, foreign countries stopped buying cardamom and the price continues to dip,” Johny added.

“Now the auctions have been suspended in Kerala and Tamil Nadu, so the movement of spices from Idukki district has stopped entirely. In the last cardamom auction, the average price quoted was only Rs 2,336 per kg,” Johny said.

Idukki district in Kerala is India’s largest producer of cardamom. Most of the natives in Idukki are farmers and live solely on income from agricultural produce. So when the traders stopped purchasing spices from them, the farmers are now in dire straits.

Small-scale traders are also upset over the present situation in the spices industry. “We vendors normally purchase spices from the farmers. But now we don’t know how to sell the products purchased through auction. With the lockdown in place, the market will also be suspended till April 14. We have already purchased and stored huge amounts of cardamom and pepper from the farmers. Now we don’t know when we’ll be able to sell it to wholesalers,” said MJ Joseph Mattapparampil, a spices vendor in Idukki.

AA George, a cardamom vendor, said, “In the present situation we can’t buy cardamom or other spices from the farmers. We don’t know when we can sell to wholesale vendors or through auction. The vendors have also stocked large quantities of cardamom and they are facing a big problem in selling their product.”

“Because of the COVID-19 pandemic, there is trade uncertainty in all countries and this will affect the import of cardamom and other spices. In the present situation, the vendors are not willing to purchase,” George added.

PM Thomas, a farmer, said, “Agriculture is my only source of income. But three days ago I tried to sell 10 kg of pepper but no vendor was ready to buy the product. I don’t know how to manage the situation.”

This report by
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#PEPPER #INDIA - Pepper imports from Brazil worry Indian growers

Kochi March 03, 2020

 #Coronavirus
Spice meet put off on virus scare

Pepper farming community has voiced concern over the presence of Brazilian pepper in India. It is reported that markets in Rajasthan, Gujarat, Delhi and Maharasthra are getting Brazilian pepper for re-export at ₹340 +GST paid and freight delivered at the buyer’s doorstep.
The price of Indian pepper comes to around ₹360. Traders claim Brazilian pepper has 600 gm/litre bulk density.

According to Kishore Shamji of Kishor Spices, pepper farmers are worried over the new entrant into the Indian markets, which is selling below the Vietnam pepper prices. The latter rules at $2,000 per tonne against the Brazilian pepper’s $1,800-1,900. It is estimated that over 600 tonnes of Brazilian pepper were imported into the country during December and January.

Normally, Vietnam bolder berries would slip into the domestic market as No 13 quantity that had snatched away Wayanadan and Karnataka pepper share from the domestic market.

Meanwhile, pepper prices in Kochi were down by ₹1 per kg with limited sellers from Kerala. The arrivals in the market was lower at 13 tonnes. The average price realised for ungarbled varieties was ₹308 per kg, while MG1 garbled stood at ₹328. New pepper was quoted at ₹298.
However, traders expect arrivals to pick up in the coming days, mainly from Wayanad and Karnataka, to be followed by Tamil Nadu.

Meanwhile, the coronavirus scare has forced organisers in Kochi to postpone the International Spice Conference 2020 slated to be held from March 8 to 11.
The organisers pointed out that many of the delegates from countries such as Italy, Europe, West Asia have informed their inability to attend the meet.

V Sajeev Kumar
The HinduBusinessLine

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#PEPPER #INDIA - Limited offtake drives pepper prices down

Kochi  March 02, 2020

Limited offtake by end-users and improved arrivals hammered pepper prices down by ₹8 a kg in Kochi last week.

The market was also down by ₹1 on Monday on the arrival of 72 tonnes and the average price realised was ₹309 for ungarbled varieties. MG1 garbled variety was quoted at ₹329, while new pepper stood at ₹299.

According to Kishore Shamji of Kishor Spices, pepper from Coorg and Wayanad with moderate demand from end-users was sold. Dealers from Delhi, Uttar Pradesh and Madhya Pradesh were not buying because of riots in the capital city.

However, cold conditions in northern India is keeping demand stable. Consumption in the domestic market has gone up to 5,000-6,000 tonnes a month, which could be met by domestic production, he said.

Shamji said imports from Sri Lanka have come down to 69 tonnes in January. February figures are yet to be known. However, traders voiced concern over the reported move by Sri Lanka and Vietnam to impress upon Indian government to withdraw the minimum import price imposed on pepper, which would enable these countries to dump their produce in the domestic market.

Though arrivals from Karnataka and Wayanad have picked up, traders said availability of Karnataka pepper was limited with good buying interest for pepper with bulk density above 550gm per litre.

A section of the trade speculates that the market is likely to drop to ₹250 per kg in Rajasthan and Madhya Pradesh on higher production, Shamji said.

V Sajeev Kumar
The HindubusinessLine

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Festival season in Gulf perks up cardamom demand

Kochi March 02, 2020

Declining prices and the ensuing Ramadan demand seem to have prompted overseas buyers of cardamom. This is evident from the procurement of 25 per cent of the commodity by exporters, out of the 32 tonnes offered in the morning auctions at Bodinayakanur on Monday.

The recent price drop is an opportunity to explore the Gulf markets. With rates coming down, the price difference with the Guatemalan variety in the Gulf markets is now $5 per kg as against $10 earlier, traders said, adding that the downward price trend is expected to provide market stability and fetch more export revenue.
Cardamom exports from India up to December was only 500 tonnes because of high prices of the commodity as against 1,300 tonnes in the previous year, they said.

The surge in export demand can be linked to dropping prices and the upcoming festival season in GCC countries. Since the festival period this year falls in May, exporters would start procuring the commodity in March and April. Indian capsules are in great demand in Gulf countries because of its superior quality.

Few export, sub-suppliers and direct exporters have participated in today’s auctions, which indicates there is some renewed demand in the Gulf countries. Some shipments were sent last week, which will reach the Gulf coasts in mid-March. There is still not much stock available to fulfil the seasonal demand. As a few countries are facing Coronavirus threat, it may affect shipments, an exporter said.

Iran, one of the active markets for Indian cardamom, may not be active until the situation improves. Kuwait seems to be very active, especially after the Gulf Food Expo, preferring the Indian commodity to the Gautemalan, the exporter said, adding that there is a likely shortage of crop from Guatemala because of drought.
Arrivals in the auctions have shown sizeable improvement at 79.5 tonnes and the average price realisation was ₹2,985.

V Sajeev Kumar
The Hindu Business Line

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#CARDAMOM - India - Cardamom exporters looking to tap Gulf markets

February 26, 2020

The subdued demand for Indian cardamom in the just concluded Gulf Food Expo has not deterred exporters from trying to tap the burgeoning Gulf markets. They are pinning hopes on the ensuing Ramadan festival season in April, which they expect to perk up demand.

However, the higher price of Indian cardamom over the Guatemalan varieties is causing concern among exporters. Though the price of export grade Indian cardamom has started receding from $58-$60 to $50-52 per kg, the Guatemalan crop is available in the range of $38-42, said Dhanavanthan Murugesan, Mercariex Worldwide, a cardamom exporting firm based in Bodinayakanur.

He pointed out that the export price in the last 10 days has remained stable and importers are waiting for a further decline in domestic price. The Indian commodity can take advantage of the anticipated shortfall of Guatemalan cardamom in the September 2020 harvest.

Indian cardamom is the most preferred variety in the Gulf markets and the active overseas markets are Dubai, Kuwait, Iran, Iraq, Jordan, Bahrain, Turkey, Canada and some European countries. However, the higher prices due to lower domestic production have given a competitive advantage to the Guatemalan crop. Many Gulf importers prefer Indian cardamom because of its quality, Murugesan said.

Saudi Arabia is a major buyer of Indian cardamom, but restrictions over pesticide residues have impacted export to that country in the last two years.

S.B.Prabhakar, a leading planter in Kerala’s Idukki district, said the Guatemalan crop shortfall is around 40 per cent this season due to drought. Moreover, the prices have doubled there and it will remain firm to bullish in the short term.

According to traders, only 10 per cent of the total production is exported now as against 15-20 per cent a few years ago. In value terms, cardamom exports have halved to ?500 crore this year from ?1,000 crore last year.

However, traders expressed the hope that the control on pesticides residues in several plantations would help achieve a good crop in the coming season. Farmers are now adopting better agricultural practices.


Ajith BK, Secretary, Association of Planters of Kerala, said large growers have already taken precautions on the usage of pesticides. Prices in the domestic market have been showing a declining trend for the last two months.

V Sajeev Kumar  Kochi | Published on February 26, 2020

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#Cardamom -Cardamom prices stable at Bodinayakanur auctions

Published on February 25, 2020

Cardamom prices remained stable on Tuesday at Bodinayakanur because of more active participation.

According to traders, upcountry buyers are keenly assessing market sentiments even though they have not yet started procurement in a big way. Liquidation of some of the high-priced inventory also helped bring stability to the market.

Contrary to weather forecasts, plantations have not received any showers in the last few months. Small and marginal farmers are facing acute water shortage in the region, traders said.

Any rise in prices is likely to depend on the summer rains. Delay in summer showers and the intensity of the summer will drive up prices, traders said.

The total quantity offered in the auction was 43.5 tonnes, which recorded a combined average price of R$2,745. In the morning session, Cardamom Growers Federation offered seven tonnes, in which 6.3 tonnes realised an average price of R$2,720.68. The highest price quoted for selected lots was R$3,276.

The offer made by KCPMC in the afternoon trading session was 36.5 tonnes, in which 35.9 tonnes realised an average price of R$2,769.32. The highest price quoted for selected lots was R$3.266.


According to trade analysts Acumen Capital Markets, the March futures fell by 3 per cent or R$89 to R$2,879.30 when last traded on Monday.

V Sajeev Kumar  Kochi | Published on February 25, 2020

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