The continuous fall in cardamom prices has put farmers in a spot. At the auction held on Monday, the highest price per kg was quoted at Rs.885 and the average price Rs.631.
However, the farmers are selling cardamom in the open market at an average price of Rs.550 and below. They say a price of Rs.700 a kg will make the cultivation remunerative.
Employment
Cardamom plantations in the high ranges provide employment to many and have a bearing on the district economy too. Many plantations have failed to provide bonus and other benefits to workers during Onam. Sources said this was for the first time in the past five years that the average prices had fallen to such a low. The price was Rs.900 a kg eight months back.
“The high fluctuation in prices is a concern though there is a system to control auctioneers from forming a cartel to keep the prices at a low,” said an official at the Spices Park at Puttady, where auctions are being held in the State.
In 2012, the price of cardamom was about Rs.2,000 a kg, more than double the present price level.
The Cardamom Growers Association said the price level was being decided by the Mumbai-based business lobby depending on production. Initially, it was expected that the production would increase considerably owing to favourable climatic conditions.
Heavy loss
However, there was heavy loss during the monsoon and the production level would be much lower than that of the last season, an office-bearer said.
Unlike the other produces, farmers could not keep it for long as it would affect quality, which was decided by the colour, shape, and smell of the produce.
Cardamom from Idukki was considered the best and there were apprehensions that low quality cardamom from Guatemala was also being put for auction to keep the prices down.
Binoy Joseph, a medium level farmer at Nedumkandam, said the low prices were detrimental to the industry. He said even as the prices of value-added products were remaining high, the low price for cardamom at the auctions was due to the lobby working at the market level.
