May 31: Cardamom growers in south India are scenting blood in the market the next season with reports of a possible 20-25 per cent drop in production thanks to a protracted dry spell over the plantation areas in Kerala, Tamil Nadu and Karnataka. If the estimates are correct, said a trader here, cardamom crop next season will shrink to about 4,500 tonnes to 5,000 tonnes from this season's 6,200 tonnes.If this happens, it will be one of the worst seasons during the last five years of cardamom production. During the 1992-93 season, cardamom production shrunk to 3,000 tonnes, owing largely to a fall in cultivated area. This was a steep fall from the 1991-92 production of 5,000 tonnes.
Though the Spices Board has not backed the current estimates, indications of an impending shortage of cardamom next season were available at the Cardamom Producers' Marketing Cooperative (CPMC) auctions in Vandanmedu last Tuesday. Traders withdrew 10 tonnes of cardamom from a total arrival of 37 tonnes sensing an upswing inprices at this season's last auctions on June 7.
However, arrivals at the recent auctions in Vandanmedu have beaten last year's records, said a sources in CPMC. Only 2,900 tonnes had arrived at these auctions in the previous season. But this year has seen arrivals go up to 3,300 tonnes. Besides, 1,800 tonnes are believed to have been directly sold bringing up the total cardamom sales till May 20 to 5,100 tonnes.
During the rest of the season, traders say, another 600 tonnes of cardamom may arrive at the auctions.
Prices continued to move up at the auctions in Kerala, Tamil Nadu and Karnataka centres during May. Last Monday, CPMC auctions saw the AGEB grade of cardamom fetching Rs 450 to 470 per kg. The average price was Rs 350 per kg with prices ranging between Rs 170 and Rs 470 per kg.
At next Friday's auctions at CPMC, 15 to 17 tonnes of cardamom is expected at an expected average price of Rs 360 per kg.
On Saturday there will be another round of auctions at Vandanmedu at which 40 to 45 tonnes ofcardamom is expected. Meanwhile, traders in cardamom business are complaining of severe liquidity crunch.
According to sources in Vandanmedu, the traders are eager to conclude auctions for this season to settle their accounts and restore the liquidity position. Reports that some of the traders at upcountry centres, specially in Mumbai and Delhi, recently lost heavily on cardamom have also added to the worries of the traders, sources added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
