Following a drop in production, pushed the price of the commodity to Rs550 a kg on Saturday at the launch of electronic auctions at Vandanmedu in Idukki district in Kerala. The trade expects the price to cross Rs600 in the near term.

The trade promotion body, Spices Board, estimates cardamom production to be down by 15%, to around 9,700 tonnes in fiscal 2008, from 11,235 tonnes the previous year. However, cardamom growers say production could decline by up to 30%. Growers blame the continuous rains for six months starting May for the low production. This has led to a rise in price of cardamom from Rs310 in August, when the plucking season starts, to Rs450 in November.

“Between August and November, 2,276 tonnes of cardamom were sold through auctions—25% less than what we had seen in the corresponding period last year,” says Sajan K. Kalarickal, grower representative and vice-chairman of the Spices Board.

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Posted: 12|9|07 at 10:26 pm. Filed under: Auction News.