NEW DELHI, December 23: The country has lost its hope to regain its share in global cardamom market, which is currently being dominated by the tiny central American country Guatemala, officials said.

"We can not do anything now to improve sagging cardamom exports as we are outpriced by Guatemala," Spices Board Chairman V Jayashankar said.

India had exported seven-eighth of the total cardamom production a decade ago but now it hardly exports three per cent of the total output.

"Ten years ago, we exported 3,500 tonnes out of total production of 4,000 tonnes. Now we hardly export 250 tonnes out of 7000 tonnes," Spices Board director (marketing) KPG Menon said.

Cardamom exports have dipped mainly on Guatemala getting increasing foothold in the global market.

With no domestic market, Guatemala exports all that is grown there. Productivity in the central American country is also higher and it is able to sell its produce at a very competitive price.

"Guatemala cardamom is priced at $4 against India's price of $12 to $13. They can afford to sell the commodity at $2," Menon said. A commerce ministry official said Guatemala could sell cardamom at a lower price in India itself.

"Our present traditional methods of cultivation are proving to be expensive and they have to be replaced," joint secretary of commerce ministry SM Acharya said.

As a result of drying up of exports, cardamom prices have come down sharply. This year, average prices at the auctions have been lower by at least Rs 100 a kg as compared to last year.

Cardamom growers say the prices are lower since Guatemala cardamom is being smuggled into India and the Spices Board joint director (publicity) Sreekantan Thampi confirmed that Guatemala cardamom was being smuggled into the country, Acharya added.

"These are being smuggled in the garb of exports to Nepal and the concerned agencies have been unable to curb it," he said.

Nepal's cardamom consumption has been estimated at 100 tonnes but Spices Board officials say at least 3,000 tonnes are being offloaded at Calcutta port in the garb of exports to the Himalayam kingdom.

Despite the grey imports, almost the entire cardamom production is consumed domestically, thanks to increasing habits like chewing paan or consuming paan masala.

Thampi said the only alternative to ensure good prices for the growers was to expand domestic consumption.

But Jayashankar denied that expanding the auction to Mumbai and New Delhi recently was to counter Guatemala cardamom.

"We want to expand cardamom auctions base to ensure that the growers get a good return, traders buy the commodity at a reasonable price and consumers get value for their money," he said.

Menon said if proper steps were taken to popularise different uses of cardamom, its consumption could touch 10,000 tonnes by 2005 and the production will also go up to that level, he said.

Acharya said India would have to find areas identical to those in Guatemala to increase cardamom production.

"Unless we are able to adopt these new methods, chances of regaining our lost foothold in global market are dim," he said.

Thampi said the Spices Board had already taken steps to make available quality cardamom to consumers.

The issue of smuggling in Guatemala cardamom had been taken up with the finance ministry, Acharya added.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.