Green Cardamom Market Southbound
The last two years the Indian crop has been very good in quantity and quality terms and this is expected to only grow stronger in the coming years. The production has now crossed 23000 tons and expected to go higher due to the increased area under plantations of cardamom, good rains and sprinkler irrigation systems, and favorable climatic conditions.
The local consumption has also increased to 17000 tons in recent times. The exports in the period from April – September 14 were 1250 tons as compared to 1442 tons in the corresponding period in 2013. This has picked steam since then and the total exports this year may be similar to the 4200 tons exported in the year April-March 2014.
In response to the changing production scenario, the Spices Board has revamped the auctioneer licenses. Since 15th Jan 2015, three new auctions have started bringing the total auctions to 12 in a week. Additionally, auctions are also held at the major consumption centers where planters offer their goods directly. This has opened up the marketing channels for the increased supply.
The arrivals so far have been about 12000 tons and still about 11000-12000 tons is expected to arrive in the coming months. Almost every planter is also holding stocks substantially higher than their average holdings. The consuming centers in India specially the Northern part of the country are also holding stocks higher than their normal off take. Further, it is reported that about 2000 tons has been imported into India already.
Guatemalan cardamom production is also reported to be good this year and the estimates are in the range of 34000 tons or higher. Around the months of August & September after the Ramazan demand, the major international consuming centers were holding large inventory of stocks.
However, the prices have increased by $3.00 per kilo in the domestic and international markets. This has reduced the demand overall and we believe that the prices are due for a downward correction any time
We advise buyers to buy only their immediate requirements.