The main reason behind this is the growing demand of cardamon in the domestic market reasons managing director of Perfect Cardamom Mayur Desai in a free-wheeling interview with The Financial Express. Desai has introduced cardomom auction at New Bombay for the first time and is quite successfully in attempting to provide an organised market to the western and eastern India. He has held 23 auctions since its introduction in October '97. Excerpts of the interview.

On the current cardomom scenario in the country

Theproduction during the current year is likely to decline by almost 20 per cent to 5500 tonnes. Earliest it was estimated to be 6000 tonnes but had to revised downwards due to unfavourable climatic conditions. The country had to witnessed a record production of 7900 tonnes in 1995-96 owing to favourable weather conditions.

The average price during the year is also likely to be bottomed out in 1995-96 at Rs 202.90 per kilogram when the production had reached an all time high. Exports during the current year is likely to be exact position of the crop as well as arrivals in the market will be known close down for the year.

The stock with Delhi market which normally hovered between 300-350 tonnes in last ten seasons has dwindled to about only 125 tonnes. The farmers may release their stock of about 300 tonnes after apprehending loss in the new crop. Even after clearing the stock the country will face an acute shortage of almost 1300 tonnes in the coming months.

On the imports of cardamom

Import ofcardamom in the country is banned since decades. A substantial Import of cardamom enters the country through illegal imports. Normally the modus operandi for it is to send the cardamom stocks to Calcutta port destined for Nepal.

Once the goods are cleared to be delivered at Nepal it get diverted to various destinations in our country. Officially Nepal record an import of about 1700 tonnes of cardamom against its demand of a mearge 67-68 tonnes.

On exports of cardamom

Quality of Indian cardamom is far more superior than its competitors. India had a strong presence in the international market uptill 1981-82. India exported 70 per cent of its production during those years which has now declined to five percent.

India is expected to export only 300 tonns in the current year. In the early 1980s Guatemala entered the world market in a small way as its total production was just 1000 tonnes against almost nill domestic demand.

Moreover the rate offered by that country was half of India's cost ofproduction of cardamom, he added.

The same position still continues. Presently Indian cardamom costs roughly Rs. 300 per kilogram whereas Guatemala offers it at a rate of Rs. 150-175 per kilogram in the international market. the production of cardamom in Guatemala is expected to reach a record high of 13000 tonnes during the current year.

On problems faced by the cardamom sector

These country has not been able to increase the productivity and thus not cut India down in the cost of production. This is a highly funds-intensive sector. the farmers have no banking and credit facilities which hampers any kind of investment to raise the productivity and quality.

The cost of production is about Rs 3000 per kg and a farmer expecting ten tonne of crop has to invest Rs 30 lakhs. If he cannot churn out the funds he has to face a crop shortage leading to further dimunitive margins. The farmers also need to be provided storage facilities as cardamom has a short shelf life of six to eight months because assoon as the crop is ready he has to bring it to market and sell it off at whatever price he gets, sometimes even at prices lower than what he has incurred on cultivation.