Cardamom's Plight: Battling Nature's Wrath in Kerala and Karnataka

Cardamom’s Plight: Battling Nature’s Wrath in Kerala and Karnataka

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Small cardamom, a precious spice in high demand, faces a dire situation as unfavourable weather wreaks havoc on its growth in central-producing states like Kerala and Karnataka. Business sources from Kerala shed light on the distressing news, pointing to significant damage in these regions. This ordeal has particularly struck the new crop in Karnataka, intensifying the challenges for this essential commodity. Consequently, small cardamom prices have exhibited intermittent surges, hinting at a continued upward trajectory.

Kerala, a major player in small cardamom production, is grappling with a challenging scenario. Typically responsible for about 60 percent of the country’s 28-30 thousand tonnes of small cardamom production, Kerala’s regions like Idukki, Wayanad, Palakkad, and Kottayam contribute significantly. On the other hand, Karnataka, the second-largest producer, accounts for around 31 percent of the national total. Kodagu, Hassan, Chikmagalur, and Shimoga form the key producing areas in the state. Tamil Nadu follows as the third-largest contributor.

60 countries-$60 million

Approximately 40 percent of the country’s small cardamom production is exported to over 60 countries, generating around $60 million in foreign exchange. Unfortunately, the current monsoon season has brought untimely rain to Kerala, causing a delay in its onset by a week. Moreover, significant rainfall deficiency in June and July has hindered small cardamom’s growth, even as the monsoon season commenced.

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Adverse weather conditions

Karnataka’s crop has also fallen victim to adverse weather conditions, particularly in the Kodagu region, where roughly one-third of the crop has been lost. The situation has deteriorated further due to the excessive rainfall post-monsoon onset, amplifying the damage. Trade sources speculate an overall loss of 10 to 15 per cent of the small cardamom crop across the country.

Further price hikes?

Despite these challenges, the domestic market experienced a boom, adversely impacting small cardamom exports. Data from the Spices Board reveals a decline in quantity and income from exports in the financial year 2022-23 compared to the previous year. Despite these hurdles, traders maintain a positive outlook, foreseeing further price hikes shortly. Despite periodic setbacks in sales, the potential for future surges remains strong.

Import/Export Statistics

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