Reports indicate that there are many forest fires raging throughout the country. These are mostly small ones caused by subsistence farmers, who start the fire to clear land for farming. Unfortunately due to the ongoing drought, fires are still burning in some areas and are out of control.

Although these fires do not affect the plantations directly, the heat generated affects the crops. One of the areas affected by the fires is the province of Alta Verapaz, where most of the cardamom is grown.

The temperature remains much above normal and there has been little rain for the past three months. Citizens of Guatemala say, the new crop will be affected. The next crop is not likely to begin until the end of October or November due to shortage of rain.

The crop is also expected to be lower and of a poor quality.Guatemala was expected to produce about 13,000 tonnes of cardamom, which may have to be revised downwards. India may also be affected as there are instances of large scale Guatemalan cardamom being smuggled into the country.

According to trade estimates, total smuggling in the current season is around 2,000 tonnes which is approximately 35 percent of domestic production. India is likely to face a shortage of about 1500 tonnes of cardamom in the coming months as the current year's crop is going to witness a fall due to unfavourable weather conditions. India's domestic demand for cardamom is about 7,200 tonnes per annum, against which the domestic supply is expected to be only 5,500 tonnes.

The average ruling prices of domestic cardamom is Rs 300 per kilogram and is likely to see a 30-40 per cent rise in the coming months due to shortfall in domestic supply. The loss of Guatemalan crop will fuel the spiralling prices, as the current price of Guatemalan cardamom which stands at Rs 150-175 per kilogram willincrease and thus limiting the smuggled quantity.