The price of cardamom has reached one of the lowest levels in the local market, trading at₹700 a kg. The price quoted in the auction at Spices Park, Puttady, has also declined. The average priceat the auction was ₹893 on Monday. For more than a month, the price has been low and had dipped to ₹650 in the local market recently.
At the auction on Monday held by Spices More Trading Company, of the 70,440 kg of produce, 66,936 kg was sold. Though a production glut was cited as the reason for poor prices, it is alleged that low quality cardamom was continuously bought for auctions to deliberately keep the prices at a low. The farmers who bring better produce to the local market also struggle because of the poor prices at the auction.
The quality of cardamom is decided by its colour, shape, and size and poor quality cardamom was brought to auction to keep the prices down, said Augustine Joseph, a farmer at Puliyanmala. The average price of cardamom was between ₹800 and ₹900 for nearly a month. The lowest average price last year was above₹1,000.
COVID-19 impact
Traders said that COVID-19 had negatively impacted prices for the past two years. The average prices remained below ₹2,000 per kg since the lockdown started. Farmers had also withheld large quantities of the produce expecting high prices. “As the prices started falling, a large volume of cardamom reached the market which further reduced the prices,” said an official of a trading company .
“Usually, the prices tend to increase with the beginning of the off-season in summer. However, they moved in reverse gear this time. By April/ May it may pick up with more demand in the festival season,’‘he added. The climate was favourable, resulting in high production in the current season. Moreoverthe withheld produce last season is also reaching the market now. Exports have been less and if the situation continues, the prices will remain at the lowest levels for long, he said.
₹7,000 a kg in 2019
The cardamom price reached the record level on August 3, 2019, reaching ₹7,000 per kg. The price in the main local market at Kattappana also reached ₹6,000 then. Farmers say they will suffer huge loss if the stock is sold now. The average price should be above ₹1,000 for the produce to become remunerative, saidMaheswaran, a farmer at Kattappana.
