#CARDAMOM - Lockdown takes a toll on cardamom

Shipments to Gulf countries in limbo

V Sajeev Kumar  - Kochi April 16, 2020

 Growers saddled with unsold stocks as Ramadan export potential goes awry

The Covid-19 pandemic has cast a shadow over India’s cardamom export prospects, particularly to Gulf countries during the holy Ramadan month, which begins on April 21 and runs up to May 20.

Exporters say Indian cardamom -- especially the 7 to 8 mm capsules -- was dominating in the Gulf markets because of its quality and price competitiveness vis-a-vis the Guatemalan variety. With the Gulf markets in the grip of the pandemic, cardamom exports from India have come to a standstill.
However, a Kochi-based exporter said his company is pinning hopes on the revival of exports to Saudi Arabia, which was suspended following issues connected with pesticide residue levels. The kingdom is reported to have taken positive steps in modifying the MRL levels, as Indian cardamom is a major ingredient in qahwa, a traditional coffee drink of the region.
Missed chance

It may be recalled that the issues connected with pesticide residue limits imposed by Saudi had impacted the prospects of Indian cardamom. Exports of the spice in 2019-20 was around 500 tonnes valued at ?150 crore compared to 2,000 tonnes in the previous year.

M Dhanavanthan, an exporter based in Bodinayakanur in Tamil Nadu, told BusinessLine that exporters have missed a business opportunity in the Ramadan period and the situation has made it even more difficult to clear the stocks. Most of the stocks are lying with farmers and traders. Only if the stocks are cleared, planters can invest in new crop, for which the first picking season begins by the end of May or early June.

Though the export market is likely to open up by August-September, there could be more stringent measures in the post-Covid days, he added.

The auctioneers in Vandanmedu said the stoppage of auctions since mid-March has caused accumulation of stock, leading to cash crunch to growers. It is estimated that around 800 tonnes of cardamom valued at ?200 crore could not be disposed of due to the suspension of auctions.

Bodinayakanur in Theni district, which is the primary trade centre for cardamom, is also a hotspot for the coronavirus. This has hindered the movement of cargo and traders. With the auctions suspended, there is confusion over pricing among farmers.

https://www.thehindubusinessline.com/markets/commodities/

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#Coronavirus impact: Global pepper market witnessing a grim scenario

Rajesh Ravi |
March 18, 2020
Global pepper market is witnessing a grim scenario with no demand seen in the past two weeks as the coronavirus outbreak impacts its prices in Europe and the US, bringing down by 6-8 % in 2020. This could fall further with COVID-19 as it spreads to key markets of the US and Europe.

Jojan Malayil, chief executive officer of Kochi-based Bafna Enterprises, said the situation was very grim and buyers were not even asking for the rates.
“There is an extreme fear in the market and our regular buyers are in the wait and watch mode. Suppliers of spices in the US market fear a drop in demand if the disease spreads to more cities and people. Prices could drop further if the situation continues like this,” he said.

Jojan said Vietnam was offering American Spice Trade Association (ASTA) grade pepper for $1,950 per tonne, while Brazil and Indonesia are quoting lower than that. However, Rajiv Palicha of Nedspice India told FE that there was not much disruption in pepper trade except in container movements slowing down due to problems in China. “Prices of all spices have declined 8-10% and arrival of the new crop in pepper has added to the pressure. There is a slight slowdown in demand from China and Italy but overall, the trade has not seen big disruptions,” he added.

Pepper Crop Report by Nedspice in January 2020 reported that new crop arrivals were expected to peak between February and April putting further pressure on pepper prices over the upcoming months. The report added global production was estimated to drop by 12% this season, but the overall stocks were expected to be still well above the total market demand.

Palicha said domestic demand for pepper and trade has not so far been disrupted due to the virus outbreak. India is the largest consumer of pepper in the world and the second largest producer after Vietnam. Traders believe that a revival in Chinese demand could help support pepper prices to a certain extent in the short run.



Published: March 18, 2020 3:00:05 AM
https://www.financialexpress.com/market/commodities/








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PEPPER MARKET UPDATE 2ND MARCH 2020 – WEEK 10

Vietnam pepper price has increased by 10% in the past two weeks. The price of material from the VND 36,500 has increased to VND 40,000 today. Despite being in the harvest season, raw material prices continue to rise steadily due to the following main reasons;

- At these level, many farmers are at a loss, almost all consider storing pepper. Farmers and domestic agent prefer to sell other agricultural products like Coffee to cover temporary costs and store as much pepper as possible. As their perspective, pepper is the most attractive to invest compared to other agricultural products.

- Pepper price is at low level, it has stimulated many exporters/agents to buy stocks. Especially, there are large enterprises with FDI capital actively participating and pushing the market up sharply in the past week. Pepper harvesting fully swing in all area in Vietnam however it is not easy to buy large quantities from last week.

- Although cross-border transactions with China are still very difficult and costly, there have been some Chinese businessmen buying and stockpiling in Vietnam. They feeling pepper price was good and waiting for better clearance opportunities. It’s stimulated the market to increased until now.

- Several exporters are big short and have to buying raw material in secret for the ordered in the first quarter 2020.

China The situation of Corona Virus has been better controlled and real demand is gradually returning to the border. However, customs clearance is still slow due to many procedures and costs.

India In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week, averaging at USD 4,372 per Mt.

Indonesia black and white pepper were reported with a 2% deficit respectively when compared to the previous week.

Malaysian black and white pepper were also traded domestically with a 2% and 1% deficit respectively as opposed to the previous week.

Sri Lanka black pepper was reported steady at an average of USD 2,929 per Mt.

Brazil  Continue to offer competitive prices but not much quantity. The Brazilian currency, which has depreciated against the US dollar by more than 10% since january, has also kept Brazil pepper prices at low level. However, we would not be surprised if the Brazilian market continues to increase follow Vietnam.

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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

https://www.thehindubusinessline.com/

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GULFOOD 2020 - IS CLOSING TODAY

See you all again next year from 21 - 25 February 2021.

Today, the sun sets on Gulfood’s silver jubilee, but the wow moments enclosed are as good as gold!

As Gulfood 2020 bids adieu today, we want to take the chance to extend a huge thanks to all our enthusiastic visitors, dedicated exhibitors, influential speakers, celebrity guest stars, sponsors and supportive partners for helping us to make our 25th anniversary edition a celebration to be remembered and playing a vital role in enticing the public to Rethink Food for a brighter and more sustainable future.

As we close doors, we wanted to leave you with a short recap of wow moments, innovative breakthroughs, and inspirational food lessons.  

See you all again next year from 21 - 25 February 2021.

VIEW SHOW PHOTOS

IMAGES FROM THE GULFOOD 2020 -I

His Highness Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, on Sunday opened Gulfood 2020, the landmark 25th edition of the region’s longest-running annual food and beverage (F&B) trade show at Dubai World Trade Centre (DWTC).
CREDITS : SOURCE - https://gulfnews.com/photos/business/in-pictures-25th-edition-of-gulfood-kicks-off-1-1

A general view of the exhibition area at the Dubai World Trade Center.
Image Credit: Atiq Ur Rehman /Gulf News

Minister of Food Processing Industries, Government of India Harsimrat Kaur Badal (centre) with Pavan Kapoor, Ambassador of India to UAE; Vipul, Consul General of India, Dubai; Kamal Vachani, Group Director, Al Maya Group; with other officials during the inauguration of India Pavilion at Gulfood 2020.

https://gulfnews.com/photos/business/in-pictures-25th-edition-of-gulfood-kicks-off-1.1581862700915?slide=10

Cardamom exporters stay off Gulf Food Festival

A lower production and absence of required quality seem to have prompted many cardamom exporters here to skip the ongoing Gulf Food Festival in the UAE.
Traders said an overall drop in production at the fag end of the current harvest season and the non-availability of quality capsules prompted them to stay off the overseas trade meet.
According to traders, higher prices limit the scope for exports. The availability of good quality capsules and price stability will encourage exports. However, both are missing now. Less than 10 per cent of production is exported now, compared with 15 to 20 per cent a few years ago. The restrictions imposed by Saudi Arabia on cardamom shipments have also impacted overseas trade in the last two years.

Market steady

Meanwhile, the cardamom market in Bodinayakanur remained steady on Monday with improved arrivals at 83 tonnes, thanks to active upcountry participation and local buyers’ support. The steady market indicates that buyers are ready to enter at the current rates, traders said.
The combined average price in the two trading session was ₹3,375.
In the morning session, the auctioneers Mas Enterprises Ltd offered 41.3 tonnes of 220 lots in which 38.6 tonnes realised an average price of ₹3,400.54. The highest price quoted for selected lots was ₹3,764.
The offer made by Header Systems India Ltd in the afternoon session was 42 tonnes of 220 lots in which 39.8 tonnes realised an average price of ₹3,349.75. The highest price quoted was ₹3,986.

Trade analysts Acumen Capital Markets Ltd said cardamom March futures fell by 1.02 per cent or ₹33.4 to ₹3,240 when last traded on Monday.

V Sajeev Kumar Kochi | Updated on February 17, 2020 Published on February 17, 2020
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