Cardamom Prices Dip Over Guatemalan Import Threat.

KOCHI: Cardamom prices in India are coming under pressure with speculation that the Guatemalan crop is reaching the Indian shores amid a lukewarm pre-Diwali demand. Expectations of higher arrivals in the coming months are aiding the negative sentiment.

Prices are hovering around Rs 1,000 per kg. In the last season, the prices had touched an unprecedented high of Rs 1,700 per kg in the absence of the Guatemalan output. Towards the end of the last season, India was the sole seller in the international market.

The Diwali demand is expected to perk up the prices a bit. But later, the prices could take a beating unless exports pick up, say traders.

The production in Guatemala, the world’s largest grower, is expected to be slightly higher than last year at 20,000 tonnes. In addition, the country is sitting on a huge carry-over stock. Cardamom harvest begins in September in Guatemala. According to Cardamom Planters Association manager, Mr Kumaresan, there are reports that the Guatemalan crop would reach India by October 15.

Mr Ayyappan of Mas Enterprises in Bodinaikkanur said the first round of harvest in India was poor. As against the usual arrivals of 2,000 tonnes, only about 1,200 tonnes came to the domestic market. The second round of harvest in October is expected to be better.

Some of the north Indian buyers are withholding purchase as they feel the prices could drop further. With the production predicted to remain at around 11,000 tonnes as in last year, the average price may not drop below Rs 1,000 per kg, he said. But if the flow of the Guatemalan cardamom increases, the prices could fall to Rs 800-850 per kg level.

Last year, Indian cardamom exports touched a record 1,975 tonnes. This year too, exports could remain high provided Guatemala is not very active in the market.

Source : economictimes.indiatimes.com