Showing posts with label cardamom production. Show all posts
Showing posts with label cardamom production. Show all posts

Friday, November 27, 2020

CARDAMOM GUATEMALA - UNUSUAL BAD WEATHER PUSHES PRICES UP




 

During November, ETA & IOTA Hurricanes hit Central America (Nicaragua, Honduras, Guatemala and el Salvador).  In Guatemala, the biggest impact was in the North Region, including Alta Verapaz, Izabal, Quiche and Huehuetenango, states, which are the most important regions of Cardamom in Guatemala.

 





These hurricanes caused floods, landslides, road damages, infrastructure damages in the rural and urban areas, Cardamom, Coffee, Corn, Beans and other crops plantations suffered serious damages; cardamom prices behavior for the rest of the season are difficult to determine. The first estimations done in August 2020 at the beginning of 2020-2021 Crop, had shown around 10%-20% more production in comparison with 2019-2020 crop. However, based on the preliminary reports after ETA & IOTA hurricanes, the total volume of 2020-2021 crop could be the same as 2019-2020 crop.

 

During the upcoming weeks it will be possible to have more data, because up to today there are still roads damaged without access due to landslides, there are still areas under water, and some rivers until now have started to return to their normal levels.  

 

We are on the peak of the harvest season, which is about to end, however, prices have remain firm at high levels.




Thursday, July 30, 2020

IPC SPECIAL ISSUE ON GUATELAMA CARDAMOM - JULY, 2020


Guatemala Cardamom Report

In Guatemala, cardamom is known as Green Gold of Guatemala as they are the world's largest exporter and producer of cardamom in the world. Since 2008 to 2019, Guatemala produced cardamom on average of 32,000 Mt annually. Furthermore, Cardamom is the fourth largest agricultural product to be exported out of Guatemala by value. The national producers of cardamom in Guatemala are distributed to several departments (regions) as follow: Alta Verapaz Department (68%), Quiché Department (14%), Huehuetenango Department (8%), Izabal Department (4%), Baja Verapaz Department (2%) and the other departments of the Republic add up to (4%) (Chart 1). Furthermore, a total of 84% of the harvested area is concentrated in 2 Departments: Alta Verapaz Department (68%) and Quiché Department (16%).

Harvesting and processing

Cardamom plants normally start bearing two years after planting. In most of the areas in Guatemala, the seedtime for cardamom performs during the rain and summer season which occurred in May-September. The high peak period of harvest also occurred during the rain and summer season around July-October (Table 1).

Postharvest treatments for cardamom in Guatemala consist of washing, curing (drying), cleaning, polishing, sorting, grading and packing. There are several ways of drying the fruit (capsules recently harvested) to reduce moisture content which include sun-drying, solar drying and wood - fired drying.

Furthermore, cardamom in Guatemala must be harvested by hand, when ready, it can be easily detached from the stem and the colour is bright green. The following definitions refer to common Guatemalan cardamom grades:

·  Jumbo Green - extra-large green small cardamom pods

·  Imperial Best Green - large green pods

·  Fancy Green Extra - extra green pods

·  Fancy Green - medium sized green pods

·  Imperial Mixed Green - large pale green pods

·  Mixed Green - pods of assorted colours

·  Mixed Green Split - medium sized open green pods

·  Yellow Mixed - medium/large closed yellow pods

·  Mixed Yellow Quality (MYQ) -medium sized light brown cardamom for grinding

·  Seeds - cardamom with the husks removed

The output of cardamom is greatly influenced by climatic conditions. The cardamom plant requires a continuous rain interspersed with periods of good sunshine. Over the past two decades, the cardamom cultivation areas in Guatemala had faced severe ecological degradation due to diminishing forest cover which was caused by the weather disturbance of El Niño and La Niña climate phenomenon. The phenomenon had adversely affected Guatemala's 2010 production, causing the quality of cardamom to deteriorate. The plant is now abnormally susceptible from attacks by pests and diseases.

Area Plantation of Cardamom in Guatemala

Cultivation of cardamom was introduced to Guatemala before World War I by Oscar Majus Kloeffer; today Guatemala is the world's biggest producer and exporter, followed by India and Sri Lanka. Over 60% of the world's cardamom is grown in Guatemala, the crops contributes to between 0.8% and 1.5% of country's GDP.

During 2008-2015 the area under cardamom cultivation in Guatemala had shown an increasing trend, recording an increase of 19% when comparing 2008 and 2015. As from 2015, the area of cardamom cultivation in Guatemala had decreased to 2017. In 2017, Guatemala planted Cardamom on 72,593 Ha of area, recording a 2% decrease when compared to 2015. In 2018, the area under cardamom cultivation was reported with an increase of 4% as opposed to 2017 to an area of 75,399 Ha. In addition, the area of cardamom cultivation for 2019 was estimated to increase by 2% to 76,761 Ha. (Table 2). The increase of the area under cardamom cultivation could be contributed to the Guatemala government's along with the Cardamom Exporters' Association (ADECAR), the Guatemalan association of Exporters (AGEXPORT) and the Cardamom Producers Association of Guatemala (CARDEGUA) implementation strategies to improve the quality of cardamom and the economic condition of the farmers involved in the production. These strate gies were implemented through demonstration plots as well as training on how to implement good agricultural practises (GAP).

Cardamom production of Guatemala had fluctuated since 2008 with a rather positive trend. Cardamom production of Guatemala was reported to have recorded an increase of 78% in the past 11 years as it recorded to have produced a total of 38,163 Mt in 2018. The highest production of Guatemalan Cardamom in the past 11 years was reported in 2014 with 38,465 Mt whilst the lowest occurred in 2008 with only 21,414 Mt.

In addition, the production of Guatemalan Cardamom for 2019 was estimated to experience an 8% increase when compared to 2018 at 41,172 Mt as result of implementation strategies by Guatemala government to improve the quality of cardamom and the economic condition of the farmers involved in the production in the Department of Alta Verapaz which was the main cardamom producer in Guatemala.

Cardamom Productivity in Guatemala

Cardamom productivity in Guatemala for the past 11 years fluctuated with a positive trend (Chart 2). In the past 11 years cardamom productivity in Guatemala was reported to have increased by 47% to 506 Kg per Ha in 2018 and by 2019 the cardamom productivity was estimated at 536 Kg per Ha. Thus, recording an increase of 6% when compared with 2018. The highest cardamom productivity in Guatemala was reported in 2013 with 553 Kg per Ha whilst the lowest occurred in 2008 with only 344 Kg per Ha.

Average Export Price of Cardamom in Guatemala

During 2017-2019, the average export price both whole and ground cardamom on Guatemala saw an increasing trend. In 2017, the average exports price of cardamom by Guatemala was reported at USD 10,350 per Mt for whole cardamom and USD 9,709 per Mt for ground cardamom. The highest average exports price of whole cardamom from Guatemala in 2017 occurred in May with USD 11,271 per Mt whilst the lowest price was reported in January with USD 9,202 per Mt. Furthermore, the highest average exports price of ground cardamom from Guatemala in 2017 was reported in June with USD 18,537 per Mt whilst the lowest price was reported in February with only USD 2,947 per Mt.

In 2018, the average exports price both whole and ground cardamom by Guatemala saw an increasing trend averaging at USD 11,784 per Mt for whole cardamom and USD 12,559 per Mt for ground cardamom. Thus, recording an increase of 14% and 29% respectively as compared with 2017. The highest average exports price of whole cardamom from Guatemala in 2018 occurred in December with USD 12,587 per Mt whilst the lowest price was reported in January with USD 10,163 per Mt. Furthermore, the highest average exports price of ground cardamom from Guatemala in 2018 occurred in April with USD 15,071 per Mt whilst the lowest price was reported in June with USD 9,668 per Mt.

The average exports price both whole and ground cardamom by Guatemala in 2019 continued the increasing trend with an increase of 47% and 15% respectively as compared to the previous year averaging at USD 17,370 per Mt for whole cardamom and USD 14,481 per Mt for ground cardamom. The highest average exports price of whole cardamom from Guatemala in 2019 occurred in December with USD 23,060 per Mt whilst the lowest price was reported in January with USD 13,595 per Mt (Table 3). Furthermore, the highest average exports price of ground cardamom from Guatemala in 2019 occurred in May with USD 27,159 per Mt whilst the lowest price was reported in December with only USD 1,437 per Mt (Table 4).

Export of Cardamom by Guatemala

As the top producers of cardamom in the world, Guatemala in the past 3 years actively exported cardamom to various countries with the major destination to Middle East countries. In 2017, Guatemala was reported to have exported a total of 35,814 Mt of cardamom from which 99.7% or 35,695 Mt of it comprised of whole cardamom and 0.3% or 119 Mt of it ground cardamom. Guatemala on average exported a total of 2,985 Mt per month in 2017 which peaked in December with 5,038 Mt. The total revenue of Guatemala's export of cardamom in 2017 was reported to be as high as USD 366.9 Million.

Year 2018 saw an increasing trend in term of quantity of cardamom exported by Guatemala. Guatemala was reported to have exported a total of 36,815 Mt of which 99.7% or 36,702 Mt of it comprised of whole cardamom and 0.3% or 113 Mt of it ground cardamom, recording an increase of 3% when compared with 2017. The average export of cardamom by Guatemala in 2018 was reported at 3,068 Mt per month which peaked in November with 5,220 Mt. In accordance with the increase of quantity, Guatemala's revenue from cardamom export was reported to have increased by 18% as compared to the previous year to a total of USD 433.7 Million.

2019 was reported with a decreasing trend in term of quantity of cardamom exported by Guatemala. Guatemala was reported to have exported a total of 36,323 Mt of which 99.7% or 36,209 Mt of it comprised of whole cardamom and 0.3% or 114 Mt of it ground cardamom, recording a slight decrease of 1% when compared with 2019. The average export of cardamom by Guatemala in 2019 was reported at 3,027 Mt per month which peaked in December with 5,816 Mt. Although decreasing in terms of quantity, Guatemala's revenue from cardamom export was reported to have increased by 49% as compared to the previous year to a total of USD 647.2 Million.

Cardamom from Guatemala are widely traded in Asia, Africa, Europe and America Countries (Table 7). In 2019, Guatemala's top 10 Country of destinations for its cardamom were reported to be Saudi Arabia with 10,107 Mt (an increase of 6% as compared with 2018), United Arab Emirates with 7,981 Mt (an increase of 10%), Bangladesh with 2,851 Mt (a decrease of 19%), Pakistan with 2,308 Mt (a decrease of 15%), Egypt with 1,386 Mt (a decrease of 0.3%), Jordan with 1,245 Mt (an increase of 1%), Netherlands with 1,127 Mt (an increase of 28%), Singapore 1,025 Mt (a decrease of 6%), Syrian Arab Republic with 958 Mt (a decrease of 29%) and Kuwait with 885 Mt (a decrease of 11%).

Source:

·  Ministerio de Agricultura Ganaderia y Alimentacion Guatemala (Ministry of Agriculture, Livestock and Food Guatemala) - MAGA

·  International Trade Centre (ITC) - Geneva

·  Food and Agricultural Organization (FAO)

·  US Food and Drug Administration (USFDA)


Note: Some of the data in this publication are from the IPC database. The data are obtained from official reports and correspondence between the IPC and relevant partiesand have been processed based on statistical norms that can be accounted for.






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Tuesday, July 14, 2020

INDIA -EXPORTS LEND AROMA TO CARDAMOM




Published on July 14, 2020

Rising trend in exports has turned out to be a saviour for cardamom, amid a waning Covid-hit domestic market.

The revival of exports to Saudi Arabia from May, after resolving the pesticide residue issues, has enabled the sector to maintain a sales momentum, after cardamom prices touched rock-bottom with an average of ₹1,069/kg when the lockdown was eased.

The rising trend in exports reflected in the auction prices which went up by ₹600, touching an average of ₹1,615 a kg, said auctioneers.

According to exporters, around 100 tonnes of cardamom valued at ₹25 crore have been shipped since May to Saudi — the single largest consumer of Indian cardamom. India shipped around 4,500 tonnes of the spice in the last three years.

However, some exporters, on condition of anonymity, told BusinessLine that shipments to Saudi have slowed down after June, following the revised Maximum Residue Limits (MRL) after prescribing an additional parameter (Dithiocarbamates) analysis (apart from the existing five parameters) for samples in cardamom shipments.

The Commerce Ministry has convened a meeting of India-Saudi Arabia Joint Working Group Meeting on July 15 to consider and share issues/challenges faced by exporters with respect to non-tariff barriers (NTB’s) from the Kingdom so that these issues can be taken up by the department during the inter-government meeting, they said.

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

Prices, production


SB Prabhakar, a planter of Pambadampara Estate in Idukki, said that there was a slow-moving cyclone by June-end in Guatemala resulting in a huge amount of rain in Coban — the main growing area in Northern Guatemala. Since the entire country is under lockdown, there could be a slowdown in exports from there. This would benefit India in the case of softening of prices.

The general perception is that there would be a better production in the ensuing harvest season by July end, said PC Punnoose of Kerala Cardamom Processing & Marketing Company.
The contributing factors for a better crop are good vegetative growth, favourable climate, the absence of a prolonged summer, intermittent summer showers and above all, the extraordinary price factor that made farmers to upkeep the plantations.

Domestic market hit

However, the fluid situation of Covid has made the things worse, impacting the domestic consumption in major consuming centres of Gujarat, Maharashtra, Delhi and Chennai, leading to a negative consumer sentiment.

Sadasivasubramaniam, Kerala Cardamom Growers Association, voiced concern over the drop in monsoon rains in Idukki region by about 40-50 per cent in June and July, which would likely affect the next crop settings.

He also highlighted some other risk factors on the production side such as labour shortage due to the closure of the border with Theni, Tamil Nadu that impacted the labour movement affecting the timely operations in plantations.

On the next crop position, Prabhakar added that much will depend on the revival of monsoon and the quantity of rains received till August-end.


Published on July 14, 2020
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V.Sajeev Kumar, Kochi, | For The HinduBusinessLine.com
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Thursday, July 09, 2020

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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Wednesday, April 22, 2020

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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Friday, April 17, 2020

#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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Saturday, April 04, 2020

# 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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Tuesday, March 10, 2020

INDIA #Cardamom Price Falls Due to Week-Long Holiday



 
Due to the week-long holiday in many North Indian markets on account of Holi festival, cardamom sales got affected. Besides, price fluctuations in the past one week kept the buyers away. Moreover, the harvest is not over in plantations and sufficient stocks are still available.
Lack of buyer support and subdued upcountry demand dragged cardamom prices down by Rs. 200 a kg at Puttady auctions.

Above all, forecasts on likely summer rains this week in growing regions has affected market sentiments, as intermittent showers would give more yields. There was not much buying by exporters as they seem to be in wait-and-watch mode for a further price drop, traders said.

The auctioneers KCPMC offered 37.23 tonnes in 180 lots. The average price realized was only Rs.2,745 per kg. According to traders, the market is likely to be stable as major buyers have come forward to participate. With the conclusion of the harvest season, traders are worried about the inferior quality of capsules coming from the plantations.
Meanwhile, there was no trading session in the afternoon as poor arrivals forced auctioneers to cancel the auctions.

Trade analysts Acumen Capital Markets said cardamom March futures fell by 3.6 percent or Rs.103.7 to Rs.2,785.6 at close.


By: Chander Mohan
https://krishijagran.com/commodity-news









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Wednesday, March 04, 2020

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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Saturday, February 29, 2020

#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/

REFERENCES
1 USD = 72.1768 INR







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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

https://www.thehindubusinessline.com/

REFERENCES
1 USD = 72.1768 INR







WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

Thursday, January 30, 2020

#CARDAMOM - In India High-priced inventory drives cardamom prices down


High-priced inventory drives cardamom prices down
V.Sajeev Kumar Kochi | Updated on January 29, 2020 Published on January 29, 2020

High-priced inventory, both at primary trade centres and consuming markets, seemed to have a say on cardamom prices, which dropped at Puttady auctions on Wednesday.
Because of this, traders remained inactive in the two trading sessions and that impacted the prices in spite of lower arrivals. There was no active involvement of buyers. Many of them are on a wait-and-watch mode to liquidate stocks and this led to lesser sales, lean buying and higher credit cycle.

Besides, the current harvest from the plantations are of inferior quality and smaller in size at the fag end of the season. This has also added to the sentiments.


The arrivals in the two trading session was 23.6 tonnes, which realised a combined average price of ₹3,660 per kg. The upcountry buyers were not active because of the huge time gap between the two trading sessions. The morning auction was completed in one hour, forcing buyers to wait for long for commencement of the second session, traders said.

In the morning session, the auctioneers Idukki Dist Traditional Cardamom Producer Company offered 11.8 tonnes, which realised an average price of ₹3,655.21 per kg. The highest price quoted for selected lots was ₹3,898.

In the evening session, Vandanmedu Green Gold Cardamom Producer Co offered 11.8 tonnes in which 10.8 tonnes realised an average price of ₹3665.92. The highest price quoted for selected lots was ₹3,905.
Trade analysts Acumen Capital Markets said that most active cardamom March futures gained by 1.64 per cent or ₹64.5 to ₹3,989.90 when last traded on Wednesday.

REFERENCES
1 U$D =71,35 INDIAN RUPEES









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Sunday, January 26, 2020

CARDAMOM INDIA - MARKET UPDATE


Cardamom prices had an unbelievable move last year from around U$D 20/kg asked in October/November 2019 to U$D 30 - 40 asked these days.
What´s happening ? Will this trend continue, stop, or revert ?
Below some consideration about the possibilities




Current climate may prove unfavourable for cardamom crop
V Sajeev Kumar  Kochi | Updated on January 24, 2020  Published on January 24, 2020

Cardamom growers are worried over the climatic conditions prevailing in the growing tracts, which is likely to be unfavourable for the next crop season. Traders pointed out that the heavy winds lashing the growing regions may be a bad sign for the crop, as winds are always an indication of a dry spell. The moisture in the top soil will be absorbed by the breeze and result in the heating up of soil and, in turn, affect the plants. This could affect the reproductive phase of the plant by way of reduction in flowering and also in falling cardamom capsules.

THE WEATHER FORECAST
The IMD's forecast of delayed summer showers is causing concern in the cardamom growing belt of Kerala. With showers expected only by April, growers are worried how the next crop season will turn out.
Absence of rains in January, February and March will affect the growth of the plants. A normal crop can be expected when growing tracts receive a rain at least once a month.
The weather forecast is likely to affect the sentiments in the market and jack up prices. Growers are already worried over the heavy winds lashing across the growing regions, which may harm the crop.

THE AUCTIONS - JANUARY 24
Meanwhile cardamom prices edged lower when arrivals rose slightly at the auctions conducted at Spices Park in Puttady. There was an improvement in arrivals with a total quantity of 52.44 tonnes in two trading sessions, realising a combined average price of R$,711 per kg.

The majority of planters are holding their stocks and do not want to liquidate them in the wake of the price drop. The market has been witnessing a declining trend in arrivals after the Pongal holidays, and the decline is expected to continue.
Traders are anticipating a revival only after the Delhi polls, and an uptick in demand in many North Indian markets. Cold weather conditions are also a contributing factor for slow demand, coupled with a cash shortage in many markets.

Traders have also a raised concerns on the quality of capsules available in the market in the wake of the last round of harvest this season.

In the morning session on Thursday, auctioneers SpiceMore Trading Company offered 30.2 tonnes in 146 lots, of which 28.5 tonnes realised an average price of  R$ 3,746.17 per kg. The highest price quoted for selected varieties was R$ 4,042 per kg.
In the evening trade on Thursday, auctioneers Sugandhagiri Spices Promoters and Traders offered 22.2 tonnes of 124 lots, which realised an average price of R$ 3,676.81 per kg. The highest price quoted for selected lot was R$ 4,351 per kg.
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REFERENCES
1 U$D =71,35 INDIAN RUPEES
3784 INDIAN RUPEES = 53 U$D
3676 INDIAN RUPEES = 51,52 U$D
4351 INDIAN RUPEES = 63,50 U$D







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