G.K. Nair

Kochi , July 6

REPRESENTATIVES of cardamom growers from Kerala are planning to meet the Union Commerce Minister, Mr Kamal Nath, soon to apprise him of their plight following continuous decline in its prices due to imports through legal/illegal routes.

"We will be meeting the Union Commerce Minister soon, as the auctions for the next season are to begin from July 11," Mr T. Ashok Kumar, Kerala Cardamom Growers Association, told Business Line on Wednesday. He said the first auction of the season would be held at Bodinayakannur on Monday and that would be followed by the one at Kumily on July 13 and Vandanmedu on July 16.

The well-distributed rains in the growing areas from May have advanced the harvesting and commencement of auctions this year, he said.

The initial arrivals are expected to be good as picking had not taken place in recent weeks due to the labour strike which has since been called off, he said. According to him, there would be a gap in arrivals thereafter and then it will increase. The current ruling price for bulk is Rs 250-270 a kg, he said.

The prices were at the lowest levels last year and this had driven the growers into financial crisis. Attributing the downward trend in prices to the imports of cardamom from Guatemala via legal and illegal routes, he appealed to the Union Commerce Ministry to initiate action to stop this practice in the interest of the Indian growers. . Nepal is reported to have imported 1,200 tonnes of cardamom from Guatemala last year when its domestic demand is estimated at around 50 tonnes. In fact, a substantial portion of it had entered Indian markets, he alleged.

Some of the major user industries of cardamom, such as ayurvedic drug and pan masala manufacturers, have shifted their units to Nepal because of the availability of raw materials at low prices. Their annual intake is said to be between 800 and 1,000 tonnes, mainly sick varieties, which is imported from Guatemala, he said.

"It is against this background that the association wanted to meet the Union Minister," Mr Ashok Kumar said.

He said the total production this year was expected to remain at last year's level of 11,500 tonnes, of which Kerala's share is estimated at around 9,000 tonnes. In 2003-04, Kerala produced 8,875 tonnes, followed by Karnataka 1,740 tonnes and Tamil Nadu 965 tonnes, taking the total production to 11,580 tonnes.

Domestic consumption of cardamom, which was at 9,500 tonnes in 2000, is estimated to reach 12,500 tonnes this year, according to industry sources. Household consumption in the country, according to them, is estimated at 6,150 tonnes with an annual growth of 3.7 per cent, while 2,050 tonnes are absorbed by the industry engaged in manufacturing of mouth freshners, ayurvedic drugs, pan masala and curry powders, which is said to be growing at 15 per cent a year. The intake by confectionaries, sweet makers and bakers is estimated at 1,250 tonnes with annual growth of 10 per cent, they said.

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