Based on these fundamentals we can expect cardamom prices to be trade in the range of Rs levels during the months of October and December.

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1 Cardamom production in India estimated to be down by 35% and no carry over stocks from the previous season may lead to sharp rise in the prices. Based on these fundamentals we can expect cardamom prices to be trade in the range of Rs levels during the months of October and December. Cardamom Outlook Reasons No carryover stocks Supply Demand Price October November Rs Production for current season estimated at 10,000 to 11,000 tons. Upcoming festive season Increasing overseas demand Lower production estimates, increasing demand

2 Introduction C ardamom (Elettaria cardamomum (L.) Maton) is referred as Queen of Spices belonging to the ginger family Zingiberaceae. It is the significant and most valuable spice in the world. It is the highly expensive (priced) spice after Vanilla and Saffron. There are three typical kinds of cardamom grown in our country viz., Malabar, Mysore and Ceylon type. The major traded varieties of small cardamom in the Globe are the Malabar and the Guatemalan. Indian cardamom is slightly smaller, but most popular because of its aroma. Cardamom is a native plant of parts of India, Sri Lanka and parts of southeast Asia, where it occurs in the wild. It has been introduced to other parts of Asia and is widely grown for its aromatic seeds. Cadamom is called as a versatile spice because of its usage in both sweet and salty foods. It is used in Auyervedic medicin preparations because of its healing effect and other properties. Its usage also in processed food, perfuse, oileoresins etc. Agronomical Features In India, cardamom grows under natural conditions of the evergreen forests in the Western Ghats. It thrives best in tropical forests at altitudes ranging from metres, receiving a well-distributed rainfall of over 150 cm and a temperature of 10 o - 35 o C. its optimum growth and development is observed in warm and humid places under the canopy of lofty, evergreen forest trees. It is highly sensitive to wind and drought and, therefore areas liable to be affected by these conditions are unsuitable. Waterlogging or excessive moisture is equally injurious. The ideal site is a sloping land with good drainage. Fruits mature in about 3 to 4 months after flowering. They are small trilocular capsules, each containing about 15 to 20 seeds. On maturity, fruits turn into pale green. Under favourable conditions of the environment, a healthy adult plant would annually produce about 200 capsules, with a green weight of about 900 g, which on processing yields about 200 g, of dry cap. Varieties and Grades of Cardamom (small): 1. Bold: It is popular export grade; 90% and above capsules will be having 6.5mm and above diameter, matured and Greenish color. Lt. Wt. will be 415 gms. 2. Super Bold: It is a very special variety. All capsules will be matured greenish and having above 8 mm diameter size. Lt. Wt. will be more than 450 gm. 3. Extra Bold: Best in the Export market. All capsules will be matured, greenish and having 7 mm and above diameter. Lt. Wt. will be 435 gm. 4. Bulk: This is the grade of cardamom produced as it is. This grade will contain all size, matured and immature capsules, black, yellow and splited cardamom. This is to be graded. 5. Small: Small size cardamom having size between 5.5 mm and 6.5 mm. Cleaned and removed dust, husk and black capsules. Lt. Wt. will be around 385 gms.

3 6. Open / Splits: More than 60% capsules will be in open condition and the color may be partly greenish/pale yellow. All capsules will be matured and the size are 6.5mm and above. 7. Seeds: Black / Brown colour seeds are the original content in every cardamom capsule. The husks were fully removed. Lt. Wt may be around 550 gm to 600 gm. 8. Fruit: Fruits are generally over matured capsules with slight yellowish in color and Lt. Wt. over 425 gm Seasonality Crop perennial Yield starts from second year of planting Harvesting - August to January Demand and Supply analysis Cardamom is also referred as grains of paradise. India, Guatemala, Srilanka, Thailand and Nepal are the major producers. The world production of cardamom is around MT per annum. In India, area under cardamom crop during was ha with production about 7900 MT, which remained steady and there was no considerable change in the area and production due to stiff competition from the Guatemala in the overseas market. Area and Production of Cardamom in India Area (ha) Area (Hects) Production (Tonnes) Production (tonnes)

4 There is no considerable change in the area during , about ha compared to area in was about ha. Due to lower cardamom prices in domestic and international markets since last three years planters showed less interest in new planting. Cardamom production in India Production follows 6-7 year cyclical pattern - production declines on every 6-7 year Production (Tonnes) Cardamom production in Guatemala Production (MT) Year Stagnant production India stands second in world production of cardamom, production during estimated to tumble around 10,000 MT compared to MT in. Uneven rain in Kerala and unfavorable weather conditions may lead to further decline in production.

5 260 Cardamom yield in India Yield (kgs/ha) Yield levels play an important role in total production of any commodity inspite of higher area. Over the period of time yield levels in Cardamom has gone sharply due to cultivation of high yielding and better varieties. Yield levels remained steady around 215 kgs/ha during to Due to uneven rain fall and exhausted old plantations may lead to fall in the yield levels. Statewise area and Production of cardamom (small) in India States Area Prodn. Area Prodn. Area Prodn. Area Prodn. Kerala Karnataka Tamil Nadu Total Area under cardamom remained stagnant due to lower prices and lack of demand in the market since last four years. Area during was around ha with production about Mt which is slightly increased during with area about ha with production about MT. Cardamom production during current season estimated to be around 10,000 Mt compared to estimated Mt during

6 Area under Cardamom Percentage share % 37% 56% Kerala Karnataka Tamil Nadu Percentage share in cardamom production % 8% 78% Kerala Karnataka Tamil Nadu Kerala occupies first position in both area (56%) and production (78%) of cardamom followed by Karnataka with 37% share in area and 14% share in production. Although area under cardamom in Karnataka has increased significantly but production is very less compared to Kerala.

7 Exports of cardamom from India Export quantity (MT) Exports of cardamom from India Prices: Export of cardamom has gradually declined after , where the exports accounted around 1545 MT compared to 676 MT during Emergence of Guatemala as a major competitor in the export market hindered the Indian trade. Due to low cost of production Guatemala offered at cheaper prices than Indian prices. Guatemala gradually grabbed the Indian export market. However, during current year export orders for Indian cardamom improving due to lower crop in Guatemala. Supreme quality of Indian Cardamom may attract overseas buyers. Consumption of Cardamom 14% Percentage consumption 3% 3% 5% 16% 59% West Asia Scandinavia Other EU Countries USA Japan Others

8 West Asia is the major consumer of Cardamom contributing about 59% to the total world consumption. It plays a significant role in trade of cardamom in producing countries. Usually during Ramdhan festival there will be huge import orders from these countries. Price analysis Cardamom prices are mainly governed by rain fall in producing centers. This crop requires continues rain and enough moisture in soil. Lack of rain in producing center may lead to lower production. Annual auction prices of Cardamom (small) - Kerala Price (Rs/kg) Cardamom prices follows usually 4 to 5 year cyclical pattern where prices will move up continuously on every fourth to fifth year. Above graph depicts the historical price trend of cardamom signaling uptrend in the market for the rest of the year. Lower production estimates (about 30% production is estimated to be less this season. In Kerala, most of the planters cultivated the new variety which yields or produce continuously nearly eight months depending on the rain fall and water availability.

9 400 Monthly average prices of Cardamom - Kerala Price/Kg Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Harvesting of cardamom in Kerala starts from August and continue till January but percentage of picking declines from month to month. Although this is the harvesting season of cardamom we can rally in the prices from above graph due to heavy demand from the domestic market. Festivals season between August and January usually lead to heavy buying from stockiest and exporters. Price (US$/kg) Annual average prices of cardamom (small) in Middle East India Guatemala

10 Harvesting (Picking) pattern in cardamom Arrivals mainly depends on percentage of picking in the growing regions August to September 20% to 25% October to November 15% to 20% December to January - 5% Factors support price rally This year there is a gap of around 40 to 45 days in harvesting due to dropping (because of rain and wind) Production is estimated to be lower by 40% this season Increasing export orders from West Asia Spurt in domestic demand due to upcoming festivals Poor quality crop in Guatemala which is the major competitor for Indian cardamom in overseas market. Price Target Cardamom prices are mainly depending on the rain fall in Kerala and other producing centers. However, prices are expected to go up sharply on account of lower production and huge demand in the coming months. Prices are projected to touch Rs. 500 per kg by this October and Rs. 550 in November - December Factors to be taken care of. If rain occurs during October and November in KERALA we can see the fall in the prices as rain boosts the production of cardamom.

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