Cardamom is an important ingredient in India’s famed spice basket. Broadly, two varieties of cardamom – small and large – are grown in India. The states of Kerala, Tamil Nadu and Karnataka are home to the small variety of cardamom, while the large variety is grown in the Northeast region. The small variety, known for its exotic quality throughout the world, is now traded in India’s commodity futures exchanges. Traditional auction markets also exist for trading in small cardamom in the country.
Global Output Global output of small cardamom is estimated to be between 30000-35000 ton per year. India and Guatemala are the main producers of cardamom in the world. Sri Lanka, Vietnam, Laos, Cambodia, El Salvador and Papua New Guinea also produce cardamom.
Global Demand
Countries in West Asia account for nearly 60 percent of the global consumption of small cardamom. Europe is credited with consuming 30 percent, while Japan consumes 3 percent. The United States and the rest of the world account for the rest of it.
Indian Output
India was the worlds’ largest producer and exporter of cardamom till the 1980s. By 1990s Guatemala emerged as the leading producer and exporter of cardamom. The output in India during 2005-06 (Apr-Mar) is estimated to be around 12,000-13,000 ton. Production in 2006-07 is expected to be 10-12 percent lower than the same period a year ago due to adverse climatic conditions in main growing areas. Kerala accounts for over 70 percent of the total output while Karnataka and Tamil Nadu contributes 20 percent and 10 percent respectively. India also consumes 90 percent of its output.
Price Formation
Colour, size and aroma are the major variables that shape cardamom prices in Indian market.
Cardamom price formation in India is also influenced by the output in Guatemala as that country controls the global markets. The average price of cardamom on auctions in India during 2005-06 was 217.44 Rupees per 1 kg compared with the 298.13 Rupees in the same period a year ago. In the current fiscal, auction price on average has stayed around 300 Rupees per 1 kg.
Crop Season & Auctions
The main harvest season of cardamom in India is between August-February. Cardamom reaches yielding stage two years after planting. The primary physical markets of cardamom are Kumily, Vandenmedu, Thekkady, Puliyarmala in Kerala and Bodynaikkannur and Cumbam in Tamil Nadu. Cardamom auctions also take place in Sakalespur and Sirsi in Karnataka.
Domestic Market
North India is the main market for cardamom produced in the country. Normally domestic demand goes up during the major festivals such as Diwali, Dusserah and Id.
Export
India exports only 5 percent of its total output as Guatemala has emerged as the major suppliers in global market. Main export destination of Indian cardamom is Saudi Arabia and other countries in West Asia. India, however, is emerging as a key player in processed segment in cardamom oil and cardamom oleoresin. Main destinations of these processed products are Europe.
Cardamom Output in India (in ton)
2004-05 2005-06
Kerala 8,616 9,765 Karnataka 1,879 1,775 Tamil Nadu 920 1,000
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