Indian cardamom exporters benefit from severe drought in Guatemala
06-Jun-2024 06:46 PM
Idukki. Guatemala, a country located in the central part of the North American continent, is facing a serious drought crisis due to lack of rain and high temperature, due to which there is a possibility of heavy damage to the small cardamom crop. Guatemala is the world's largest producer and exporter of green cardamom.
Due to the fall in production there, the exportable stock will be less and the price will also remain high. Indian exporters are expected to benefit from this.
Guatemalan cardamom is available at a relatively cheaper price because its quality is lighter than Indian goods. It is exported on a large scale to the countries of Middle East Asia and the Gulf region.
It is understood that due to a significant decrease in production in Guatemala, many countries in the Gulf region may be forced to increase the import of Indian cardamom.
The quality of Indian cardamom is very good, so its price remains a bit high. In India, the harvesting of the new crop of cardamom may gain momentum in one and a half months.
Many parts of Kerala's most important producer district - Idukki - are currently receiving normal or good rainfall, which is expected to improve the yield rate of cardamom there.
Since the rainy season has started there from May 10 and usually after 80-90 days the first phase of plucking and preparation of new stock of cardamom formally begins, it is expected that its arrival will start increasing rapidly in July-August.
The average price of cardamom in auction centers is running above Rs 2200 per kg. There was a drought crisis in Idukki district during the four months of January- April, due to which there is a possibility of a decline in cardamom production.
Trade analysts believe that its auction price can remain above Rs 2000 per kg. But small and marginal producers can sell their stock quickly, due to which the price of cardamom may soften a little for a few days of the new season.
In some areas of Kerala, cardamom production is estimated to have decreased by 40-50 percent. If the demand remains strong like last year, then the prices may increase significantly.
In Guatemala, production is estimated to have decreased to around 25 thousand tons. Here in India too, a big producer has expressed the possibility of cardamom production decreasing by about 50 percent and remaining only 16 thousand tons, but at present it is not being considered reliable.