Kochi: Short supply of cardamom in Guatemala is helping Indian exporters sell larger volumes despite high prices in local markets. Interestingly, the global shortage is also helping India to capture some lost export markets.
Exports from India had declined due to the premium on Indian cardamom compared to the Guatemala crop. India lost its traditional markets like Kuwait, Japan and Oman to Guatemala, while retaining Saudi Arabia.
India’s export of small cardamom was 650 tonne in 2006-07 of which Saudi Arabia was the leading importer with 63% of the volume and 70% of the value.
“Demand is high and we are getting good contracts from even Europe. In the past few years our exports came mainly from Saudi Arabia during the Ramadan season,” Ramalingam Vishwanath of GRK Traders told FE.
Exports in the first eight months of the current fiscal are higher by 150% when compared to the performance of the same period last fiscal, according to spices board estimates.
In November 2009, India exported 275 tonne of cardamom as against 50 tonne during November 2008. The unit value of exporting a kg of cardamom was also higher by 13%.
Exports in December is also estimated around 275-300 tonne, board sources said. The exports are likely to increase further and might test record levels, traders said. Interestingly, higher exports in the current fiscal are coming at higher unit value realization. Indian cardamom prices are currently ruling above Rs 1,000 per kg.
According to reports of the Virtual University for Agricultural Trade (VUAT) of the Government of Kerala, export of cardamom from India increased from early nineties and reached a peak level of 1,545 tonne in 2000-01, but it declined roughly by half in 2005-06.
Export of small cardamom declined to 875 tonne valued at Rs 27.01 crore during 2005-06 because of the severe competition from Guatemala.
However, exports constituted only a small fraction of the production. It was hovering around 6% during the last three years, in contrast to approximately 15% in 2000-01.
Indian prices always stays at a premium to the global price because of the strong domestic demand, Ramalingam Vishwanath said.Reports indicate that India imports 300-500 tonne of cardamom annually, which helps in limiting the domestic price.
Source : Financial Express