Growing demand amid steady global output is likely to support the cardamom during the crop year. Good festive demand amid lower stocks in Guatemala will support the commodity to garner strength this year.

The spices board of India conducted a Cardamom plantation visit in Guatemala and as per the statistics by the spices board of India; the production in 2011 is estimated to be around 20,000 tonnes, almost same quantity in the last year. The average annual production of Guatemala's cardamom production is around 20,000 tonnes.

Cardamom imports into India from Guatemala declined sharply in the consecutive years. The reason for this significant fall in imports from the Guatemala is due to the consistent decline in production in Guatemala and the strict vigil at major customs points through which cardamom is imported to India. Import of cardamom to India has been declining consistently. From April to August 2010, only a meager quantity of 45 tonnes of cardamom has been imported from Guatemala. In 2009-10, the import was 95 tonnes and in 2008-09, it was 180 tonnes. The decline is from 875 tonnes in 2007-08.

It is reported that the production in Guatemala in 2010 would be about 20,000 tonnes which will be no way near their peak production of 30,000 tonnes in 2004/2005. It is also reported that the inventory in Guatemala as well as in the major consuming countries like Saudi Arabia is very low.

According to the latest estimates by the spices Board of India, India's production in 2010-11 is estimated to be almost at the same level of last year i. e. 10,350 tonnes. Export of cardamom (small) during the current period was 450 tonnes valued Rs. 51.70 crores as against 600 tonnes valued Rs. 43.37 crores of last year during April to September 2010.

Technical Outlook: In the current season, Cardamom prices are forecast to raise on strong demand and lower production estimates. According to trade sources, cardamom production in India is likely to decline. Though the onset of monsoon was earlier, its activity in June and July was subdued due to unfavorable conditions. Hence, we recommend buying January contract technically support for the cardamom MCX is seen at 1079 and below could see a test of 1038. Resistance is now likely to be seen at 1139.10, a move above could see prices testing 1177.20.

CARDAMOM

Cardamom, admired as "Queen of Spices" belongs to ginger family Zingiberaceae. It is one of the most exotic and highly priced spices across the globe after Vanilla and Saffron. Indian cardamom has a history as old as human civilization. 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. Cardamom is called as a versatile spice because of its usage in both sweet and salty foods. It is used in Auyervedic medicine preparations because of its healing effect and other properties. Its usage also in processed food, perfuse, oileoresins etc. There are three typical kinds of cardamom grown in our country viz., Malabar, Mysore and Ceylon type. India was the major feeder of Cardamom to the entire world till entry of Guatemala into the spree.

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. In recent years, production in Guatemala surpassed the Indian figure. Indian cardamom is slightly smaller, but more aromatic. Other than India and Guatemala, it is being grown in Sri Lanka and Tanzania. Cultivation Practices Cardamom is grown commercially in plantations under the shade of tall forest trees. It is a very labor-intensive crop to produce. The fruits are picked individually by hand before they are fully ripe, over a period of several months. 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 600-1500 metres, receiving a well distributed rainfall of over 150 cm and a temperature of 10o - 35oC. 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. The crop does not survive in waterlogged or excessive moisture. 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. Harvesting period Cardamom plants normally start bearing two years after planting. Throughout the cropping season of cardamom, i. e. from August to March approximately 6 picking is done in each 45 days interval. In most of the areas the peak period of harvest is during October-November. Ripe capsules are harvested in order to get maximum green colour during curing. The output of cardamom is greatly influenced by climatic conditions. The cardamom plant requires a continuous spell of rain interspersed with periods of good sunshine. The plant is very susceptible to attack by pests and diseases. Besides, the cardamom growing tracts in the country are facing severe ecological degradation over the past two decades due to diminishing forest cover, leaving the region open to devastation by floods and droughts. Cardamom requires tropical forest conditions for growth and a lack of such areas makes very few states in the country suitable for its plantation.

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 8mm 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 7mm 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.

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

Global Demand-Supply Scenario

Guatemala, India, Tanzania, Sri Lanka, El Salvador, Vietnam, Laos, Cambodia and Papua New Guinea are the major cardamom growing countries.

World production of cardamom is estimated at 30000 -35000 MT.

Guatemala produces nearly two-third of the total global cardamom production. Its production has increased significantly from 13500 MT in 2002 to 23000 MT in 2004.

Indian Scenario

Production has decreased marginally from 11920 MT in 2002-03 to 11415 MT in 2004-05.

Kerala (70%), Karnataka (20%) and Tamil Nadu (10%) are the cardamom growing states in India.

About 90% of the produce is consumed within the nation.

India roughly exports 5% - 8% of its total production. Saudi Arabia accounts for 42% and Japan 39% of India's exports (2004-05).

Saudi Arabia is single largest importer of cardamom, distantly followed by Kuwait.

Export of value-added product from cardamom like cardamom oil and cardamom oleoresins are increasing to Germany, Netherlands and UK.

Major Indian Markets

Cardamom is sold at auction centres. Important markets for cardamom in the country are Vandanmendu, Bodinayakanur, Kumily, Thekkady, Kumbum and Pattiveeran Patti in Kerala.

Factors Influencing Cardamom Markets

Fresh cardamom is green and has a characteristic aroma. Freshness, colour, aroma and size are the major factors that influence cardamom prices, in addition to the current supply-demand scenario.

Cardamom is usually stored in cooler areas to preserve its inherent properties.

Indian cardamom especially Alleppey Green is a premium grade against all other international grades. However, the production and export from Guatemala has profound influence on Indian cardamom prices.

Weather and annual production of a year.

Production in other countries particularly Guatemala.

Year ending stocks and stocks-to-consumption ratio.

Time of arrival of new crop in the market.