Rising temperature, drop in output push up cardamom prices
Cardamom prices has started moving northwards to reach ₹2,000 per kg reportedly because of lower production in the prevailing sultry weather.
Prices in the first week of March was in the range between ₹1,300 and ₹1,400.
Traders attribute the surge in prices to the recent lack of sucient rainfall in the production centres over the past three months, coupled with temperatures rising to an optimum level of 34-35 degrees Celsius. Consequently, this has severely aected the crops, causing tillers and panicles to dry up. Such damage to the plants is expected to impact the crop in the upcoming season.
Previously, planters relied on their own water resources to irrigate the land. However, the depletion of water levels in their land due to the extreme heat conditions has also aected plant irrigation. Traders suggest that the success of the next harvest season in July-August will likely hinge on the availability of sustained rainfall for at least a couple of days.
However, the rising prices seem to have not derived any benefit to majority farming community and it helped those traders who procured the commodity at the time of declining prices. Fearing a further drop in prices with the starting of summer showers, many small traders did not procure enough quantity.
The plant damage for current year is estimated at 20 per cent which is likely to go up if the growing areas face further scarcity of summer showers in the coming days, they pointed out.
According to auctioneers, the market is witnessing a subdued demand after Ramadan and is likely to pick up in July-August. On the export front, the market is witnessing a subdued demand especially from the Gulf nations after Ramadan. However, the drought conditions in Guatemala have aected their crop badly, bringing the prices on par with Indian raw material. Guatemala has seen a sharp fall in crop to around 30,000 tonnes this year from 54,000 tonnes last season.