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51

CHAPTER III

PRESENT GLOBAL SCENARIO OF THE

CARDAMOM ECONOMY

3.1 GUATEMALA

3.2 SRI LANKA

3.3 TANZANIA

3.4 UGANDA

3.5 LAOS

3.6 INDIA

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PRESENT GLOBAL SCENARIO OF THE CARDAMOM ECONOMY

Cardamom, sometimes called Grains of Paradise, is a pungent, aromatic herb

first used around the eighth century. The most common species, Elettaria

cardamomum or small cardamom is by far best in terms of quality. Cardamom is

grown either as a forest crop or as a component of the agro forestry or even as a wild

growth in the major producing countries of the world. Guatemala is the leading small

cardamom producer, producing around 38,500 MT in 2013-14 followed by India

where the production is around 15, 000 MT in the same period. The other major small

cardamom(s) producing countries are Sri Lanka Tanzania, Uganda, and Laos. Due to

its rich genetic diversity, scientific production, using, and developing High Yielding

Variety as well as well informed planters and better institutional framework through

Spices Board makes the Indian cardamom the best in quality in the world. Price

fluctuation is a common feature of the commodity in the domestic and international

market Climatic conditions, cost conditions and coping with the international quality

are the most important factors determine the future prospectus of the cardamom

producing countries of the world.

It is believed that small cardamom is introduced to Sri Lanka from India

during the beginning of the 19th century and to Guatemala in 1914 by Oscar Majus

Kloeffer, a German coffee planter. Thus, small cardamom has a history of about 200

years of domestication in Sri Lanka and about 100 years of domestication history in

Guatemala. German settlers introduced cardamom to Tanzania during 1890’s.Vietnam

and Laos are the later players in the field. Consumption of cardamom has sharply

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53

increased throughout the world during the last two decades. The major consuming

countries of cardamom are the Middle Eastern countries, India, Pakistan, European

countries, the US, and Japan. Middle Eastern countries such as Saudi Arabia and the

United Arab Emirates, and South-East Asian countries such as India, etc., account for

more than 60per cent of the world's consumption. Saudi Arabia is the single largest

importer of Cardamom in the world, followed by Kuwait. The other major importers

are Kuwait, UAE, USA, Japan, Pakistan U.K, Malaysia, Israel, Australia, and Canada

and South Africa.

The trend of the world production of cardamom shows an upward tendency

except in some years. The slack in the production is mainly due to the financial crisis

of 2008 and the unfavorable supply conditions in the major producing countries like

Guatemala and India. The following table illustrated the world production for the last

seven years.

Table 3.1

World production of cardamom (2006-2013)

Year Quantity in (MT)

2006 40571.50

2007 40514.80

2008 33675.20

2009 45067.30

2010 40891.30

2011 41582.90

2012 53110.50

2013 51062.70

Source: United Nations Commodity Trade Statistics (2013)

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0

10000

20000

30000

40000

50000

60000

2006 2007 2008 2009 2010 2011 2012 2013

Year

Pro

du

cti

on

(Q

ua

nti

ty

in T

on

ne

s

)

Source:United Nations Commodity Trade Statistics,2013

Fig 3.1: World Production of Cardamom

Due to the use of High Yielding Variety in all the major countries like

Guatemala and India, the total production showed an upward tendency except in

2008, when the global depression affect all sectors.

The volume of cardamom consumption in the world is illustrated below in the

following table and figure.

Table 3.2

Percentage of cardamom consumption by nations in 2010

Country Percentage contribution by each country

U.A.E and Saudi Arabia 60

Singapore 5

European Union 6

U.S 2

Others 21

Source : UN CoMTrade, USITC and Eurostat in 2010

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5%

6%

2%

21%

60%

U.A.E &Saudi Arabia

Singapore

European Union

U.S

Others

Source : UN CoMTrade, USITC and Eurostat in 2010

Fig. 3.2 Percentage of cardamom consumption by nations in 2010

From the above figure and table, it can be inferred that most part of the import

demand come from the Gulf countries. The historical data also proved that that

demand is more or less stable. There is bright future for the Indian cardamom in those

countries.

Let us have a look on the present global scenario of cardamom by giving a

birds view over the major cardamom producing countries of the world. Cardamom

economy of India in detail will be discussed in the subsequent chapters

(1) GUATEMALA

Cardamom is the "Green Gold of Guatemala"1A German coffee planter Oscar

Majus Kloeffer introduced Indian cardamom in Guatemala before World War I.One

1 Milian, Spencer L. (29 June 2014). "Cardamom – The 3Gs – Green Gold of

Guatemala". USDA Foreign Agricultural Service

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could notice a considerable improvement of Guatemalan cardamom economy during

the years. There is a clear improvement in production and yield of cardamom for the

period under consideration.

Table 3.3

Area and production of cardamom in Guatemala (2008-2013)

Year Area(Ha) Production (MT)

2008 62,300 21,414.23

2009 62,300 22,912.95

2010 62,300 22,764.18

2011 63,910 26,360.72

2012 69,370 36,241.40

2013 69,510 38,453.00

Source: -DIPLAN-MAGA/BANGUAT

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Are

a i

n H

a a

nd

Pro

du

ctio

n

in M

T

2008 2009 2010 2011 2012 2013

Year

Area(Ha)

Production (MT)

Source: -DIPLAN-MAGA/BANGUAT

Fig 3.3: Area and production of cardamom in Guatemala (2008-2013)

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The total area and production of Guatemala from 2008- 13 is illustrated in the

above figure and table. From the figure, it is clear that area and production showed an

increasing tendency, indicating a better prospectus for the cardamom economy of

Guatemala. Recently Guatemalan production is affected by natural disasters like flood

Being the largest producer and exporter of the cardamom in the world,

Guatemalan cardamom has got a profound influence in determining international

trade of the commodity and it is evident from Fig 3.1.When compared to its main

competitor in the field , she is far better in her performance in her production as is

evident from the fig 3.4

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

Pro

du

ctio

n i

n M

T

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Year

Guattemala World

Source: -DIPLAN-MAGA/BANGUAT

Fig3.4: The proportion of Guatemalan cardamom to World cardamom (2008-2014)

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The figure revealed the leadership in the production of cardamom by

Guatemala. Through the years under consideration, the country holds the majority of

production.

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

Pro

du

ctio

n i

n M

T

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Year

Guattemala India

Source: -DIPLAN-MAGA/BANGUAT, Spices Board, India

Fig3.5 Cardamom production by India and Guatemala (2008-2014)

From the table 3.4, it is clear that In 2013 the total production recorded

38,453 MT. In terms of foreign exchange, cardamom placed fourth rank in

Guatemalan economy and the majority of the product is exported to Middle East and

European Union. The cardamom cultivated in Guatemala is, Elettaria cardamomum a

native of India's Malabar Coast. It is typically grown at an altitude of 250 to 1,500

meters with an annual rainfall of 1,000 millimeters (mm) to 3,500 mm and

temperature of 50 to 86 degrees Fahrenheit. Regionally, the Department of Alta

Verapaz accounts for approximately 70 percent of production.

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Cardamom is regarded as a commercial crop in Guatemala and people

cultivate this crop for earning income and not for consumption purpose. Being the

largest producer and exporter, cardamom playing an important role in generating

foreign exchange to the country.

According to the report made by the Catholic Relief Service in “Rapid

Economic Feasibility study in Guatemala (2014),the domestic demand for cardamom

is low and they used only meager amount in their diet. However, its importance lies in

the generation of foreign exchange, and as crop suitable for many small householders.

CARDEGUA (the Cardamom Producers Association of Guatemala) set up in 1998

with a view to develop the product in accordance with the international demand. The

principal function of CARDEGUA is to strengthen the productive chain of cardamom

through the implementation of technical assistance and research.

The economy of Alta Verapaz depends heavily on cardamom. According to

CARDEGUA, approximately 350,000 smallholders and dozens of farms are involved

in the production, which together, accounts for 70 percent of Guatemala’s production.

Most producers are indigenous who own mini-crops whose land extension does not

surpass 1.4 hectares. Producers work at the family level and cardamom is sold to an

intermediary who carries out the drying process and then resells it to an exporter.

When compared to the previous years an overproduction was recorded and depressed

the price of cardamom during 2012 and 2013. However, in 2014, the price of

cardamom in the Guatemalan domestic market has risen on the expectation of a

smaller crop. Guatemala’s cardamom marketing chain has up to seven different levels

of intermediaries, which are local gatherer, community buyer, community markets,

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municipal retail buyer, benefactor, municipal wholesale buyer, and a wholesale

marketer of Coban, Alta Verapaz.

The following table show Guatemalan export and import of cardamom for the

last six years.

Table. 3.4

Export and import of cardamom in Guatemala (2008-2013)

Year Import Export Average Export

price USS MT USS MT USS

2008 120.05 122080.00 27948.35 206201021.00 9477.75

2009 3.21 6380.00 23694.22 304025768.00 12631.22

2010 35.43 20638.00 22167.17 308093125.00 13698.62

2011 24.00 34160.00 24150.00 296881847.00 12289.17

2012 128.91 173612.00 35989.88 250327130.00 6955.49

2013 74.54 47052.00 37999.87 217605350.00 6958.22

TOTALS 386.14 403922.00 151304.52 147134241.00

Source: Spencer L. Milian , Cardamom -The 3Gs -Green Gold of Guatemala, Gain

Report NO:GT-1404(6/29/2014),USDA Foreign Agricultural service.

It is clear from the table that their import constitute only a minor amount,

whne compared to their export. For example, in 2013, they import only 0.2per cent in

porportion to their export.Almost 95 percent of their production is used for export

because their domestic demand for cardamom is negligible.The following table shows

their export by destination from 2006-2012.

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Table 3.5

Guatemala cardamom expert by destination (2006-2012)

Destination 2006 2007 2008 2009 2010 2011 2012 Annual Average

per cent by country

Saudi

Arabia 10,145.75 8,986.98 8,911.14 7,678.78 7,541.04 9,082.74 9,488.12 8,547.79 31.99

United

Arab 2,291.80 4,103.49 2,836.41 4,291.74 3,730.84 3,280.41 6,372.02 3,858.10 14.44

Emirates

Syria 3,545.50 2,148.29 1,13.92 1,398.79 1,394.18 2,273.81 2,670.82 2,080.33 7.79

Pakistan 1,607.34 1,246.29 630.34 1,729.20 1,186.22 1,440.36 2,843.75 1,527.07 5.72

Jordan 1,530.02 1,468.81 1,317.89 974.46 490.52 1,047.96 1,780.33 1,230.00 4.60

Singapore 1,512.96 1,923.22 781.74 1,227.80 1,318.86 454.63 1,011.98 1,175.88 4.40

Bangladesh 1,120.77 759.58 736.31 804.40 559.38 1,076.95 1,910.36 994.54 3.72

India 838.91 1,089.35 714.29 775.23 352.02 578.04 2,332.74 954.37 3.57

USA 512.92 657.44 754.37 550.80 987.66 980.12 681.98 732.18 2.74

Kuwait 686.04 656.64 914.95 349.86 578.19 807.39 862.64 693.67 2.59

other NESI 7,274.94 4,908.03 3,220.01 3,913.18 4,034.27 5,135.59 6,029.15 4930.74 18.43

Total 31,166.95 27,948.11 21,948.36 23,694.22 22,167.17 24,158.00 35,989.88 26,724.67 100

Source: Spencer L. Milian , Cardamom -The 3Gs -Green Gold of Guatemala, Report NO:GT-1404(6/29/2014),USDA Foreign Agricultural service.

The above table makes it clear that Saudi Arabia is the major importer of

Guatemala importing 31.99 percent of cardamom,followed by U.A.E(14.44 per

cent).

Futuristic prospects designed by the Guatemalan government

A bill named the National Cardamom Law was proposed in 2013 .Its objective

is to create an institute with one percent of the national budget for the controlling

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production, marketing and export of cardamom through pricing, license and permit

authorization, registration, fines and penalties. In August 2013, a conference lead by

the National Cardamom Congress, at Santa Cruz, Alta Verapaz, put forwarded some

important political and strategic actions to revive the cardamom economy of the

country. They are:

1. The need to create the country band

2. Achieve cardamom institutionalization

3. Promote distinction of the product by territoriality

4. Promote domestic consumption either as food or as medicine

5. Create plant protection cords

6. Create market information network

7. Create a special unit to follow up the above strategic action

(2) SRI LANKA

The climate and soil of Sri Lanka - the “Spice Island” - are renowned for

producing the exceptional spices known as tropical aromatics .Cardamom can be

found in central hill country of Sri Lanka where elevation is 600M AMSL(Above

Minimum Sea Level). With a long history in spice cultivation, Sri Lankan small

holding farmers from the central hill country have adopted cardamom cultivation and

most of cardamom production is done under forest cover or as the secondary crop in

mix cultivation. Sri Lankan cardamom exporters provide nearly 0.1 per cent of the

global cardamom demand in green cardamom pods, oil and powder. Three types of

Cardamom are found in Sri Lanka and they categorized based on the shape of the

inflorescence.

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• Malabar – Inflorescence is prostrate.

• Mysore – Inflorescence is vertical.

• Vazhukka- Inflorescence is inclined

Kandy, Matale, Kegalle, Nuwara Eliya, Rathnapura and a part of Galle are the

major growing districts. The Small cardamom variety viz. variety Ceylon is largely

cultivated in Sri Lanka.Ceylon type pods are large, triangular, and indigenous to Sri

Lanka. Three types of Cardamom are found in Sri Lanka and they categorized based

on the shape of the inflorescence.

• Malabar – Inflorescence is prostrate.

• Mysore – Inflorescence is vertical.

• Sri Lankan variety - Inflorescence is inclined .

The Wild-cardamom of Sri Lanka bears the largest capsules, which sometimes

attain 2.5-5 cm, recognized as variety major. The variety is classified as Elettaria

Cardamomum Maton.The Sri Lankan variety differs from both Mysore or Malabar

varieties because of the major compounds in place between the two varieties. The

Cardamom flavor is due to several aromatic chemicals present in the pod. Terpinyl

acetate and 1:8 cineol are the two major compounds responsible for the flavour. The

ratio in which these compounds are present differs in different varieties. The best

composition is the high terpinyl acetate with moderate 1:8 cineol, which is

characteristic of Sri Lankan Cardamom.2 Cardamom exports from Sri Lanka

constitute light green verities Sri Lanka. In 1873 and 1874, Ceylon (now Sri Lanka)

exported about 9,000 lb. each year. In 1877, Ceylon exported 11,108 lb, in 1879,

2. Tropical Planting and Gardening, by RF MacMillan, Trubus,1989

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17,732 lb, and in the 1881-82 season, 23,127 lb. In 1903, European planters owned

4,000 acres of cardamom growing areas. In Sri Lanka, traditionally made barn driers

are still in operation where both the humidity and temperature are both well

controlled. This controlled atmospheric conditions, when processing helps retain the

green color of the capsule.

Cardamom is classified in to different grades signifying Sri Lankan origin.

The different grades of Sri Lankan cardamom are identified as Gr.Special1,2 and 3

and they are : Lanka green (LG), Lanka Light Green (LLG 1 and 2), Lanka Brown

(LB), and Lanka Non Specified (LNS) Cardamom exports from Sri Lanka constitute

light green verities Sri Lanka. The most promising opportunities for Sri Lankan

cardamom appear to lie in North America, and to a lesser degree in Europe and Japan.

In 2000, Sri Lanka exported 8 MT of cardamom with a value of $75,000.Half went to

Jordan and 20 percent to Western Europe. Only 24 kgs were exported to the United

States, the nineteenth largest national market. U.S. imports of cardamom from Sri

Lanka were negligible is around 0.5 percent and data is not available only for the

recent years. In terms of foreign exchange earnings to the country, Spice exports have

indicated US$ 214 million in the year 2011 indicating 11.73per cent of growth

compared to the previous year. Net foreign exchange earnings from Spices and Allied

product sector are recording above 80 per cent. Sri Lanka has taken several steps to

enhance and improve the spice industry. Processing centers have been upgraded to

achieve international quality standards such as HACCP3. More emphasis is given to

3 What is HACCP?

HACCP, or the Hazard Analysis Critical Control Point system, is a process control

system that identifies where hazards might occur in the food production process and

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improve agronomic practices by educating farmers on GAP4(Good Agricultural

Practices). Small producers are encouraged to follow good manufacturing practices

when drying and processing these products.5 With the increase of international

demand for natural products, and the island's focus on enhancing and evolving its

value added range, spices will continue to be a key source of Sri Lanka's export

income. Cardamom is cultivated as a mono crop in the Central hills and used mainly

in the food industry, as a flavor and the dried fruit is the commodity of trade. The

total export of cardamom is 2,795 hectares. Total production is 57 MT and oil export

is 1.5 MT in 20116

The major export markets are Jordan, Western Europe, India, U.SA, Spain,

U.A.E. The Export Development Board (EDB) statistics revealed that Sri Lanka's

spice exports rose 40 per cent to $329 million in 2013 from $ 236 million in 2012.

Spice export revenue was US$ 115 million in 2009.As Sri Lanka's spice exports

puts into place stringent actions to take to prevent the hazards from occurring. By

strictly monitoring and controlling each step of the process, there is less chance for

hazards to occur. 4 Mushin,Fazal, ‘The essential oil industry in Sri Lanka’ ,Paper presented at the

IFEAT International Conference in Singapore, 4 -8 November 2012 ‘Essential

Asia’Pages 113-129. in the printed Conference Proceedings. 5 http://www.srilankabusiness.com/spices 6 Mushin,Fazal, ‘The essential oil industry in Sri Lanka’ ,Paper presented at the

IFEAT International Conference in Singapore, 4 -8 November 2012 ‘Essential

Asia’Pages 113-129. in the printed Conference Proceedings

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leaped by 40 per cent, a new program was launched by the EDB to boost exports of

the perennial crop like cardamom.7

Initiatives to boost spice trade by Government of Sri Lanka

To equip the spice industry and to face both national and global challenges an

organization named SLSC (The Sri Lanka Spice Cluster) was formed. The core of the

cluster includes representatives from growers, traders, distillers and extractors,

exporters, brokers, associations, industrial technology institutes, and government

ministries and agencies, such as the Export Development Board (EDB) and the

Department of Export Agriculture (DEA). The cluster’s membership serves as a proxy

for the industry. The cluster aims to create value for the customers and prosperity for

the spice industry in Sri Lanka.8

(3) TANZANIA:

Tanzania is the third largest producer of small cardamom following Guatemala

and India. She has excellent climatic conditions for the production of a wide range of

spices. She has abundant places with excellent weather conditions for the growth of

spice sector, which not only provide benefits rural people but also having export

potential as foreign exchange earner. Tanzania exports the whole of their cardamom

to the foreign countries.

German settlers introduced cardamom to the area in the 1890s. In1954, Amani

Botanical Garden in the Usambaras distributed 10 seedlings to farmers who

vegetative propagated the material for other farmers. After one decade, the cardamom

business started to flourish. The local Washambaa people and immigrants from the

7 The Export Development Board (EDB)statistics,2013 8 http://www.srilankabusiness.com/spices

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nearby highlands are currently the main cardamom growers in the area. Cardamom

stock in Tanzania belongs to three varieties (a)‘Thwarites,’ (b)‘Malabar,’

and(c)‘Mysore’. Cardamom is still grown inside forest reserves and conservation

areas, even if this practice is illegal. About 26per cent of the forested area is assumed

to be under cultivation, mainly of cardamom. Estimates of the area under cardamom

cultivation vary from 11,000 hectares to 17,000 hectares in the in the East Usambaras

only.9 About 60 per cent of the highland farmers grow cardamom, and cardamom

farms cover approximately half of the total land area allocated to cash crops. The

contribution of cardamom to average household income is about 30 per cent, and it

accounts for more than 50 per cent of total cash-crop income. Cardamom growers are

better off than other semi-subsistence farmers are, but their income is still far below

the national per- capita average.

There are no producer associations and no quality control mechanisms. Until

1984, a number of marketing societies and boards for cardamom existed in Tanzania

but now produce is usually sold at a very low price to intermediaries. Price

fluctuations are large, and prices can suddenly drop to half of the previous month’s

level.. Average annual cardamom yield in the East Usambaras is 80 kg/hectare .10 In

the mid-1970s, the East Usambaras were still producing about 760 t of cardamom per

annum (equaling 20per cent of total world production). Guatemala took the leading

position from India in 1980. In 1998, Guatemala already produced 64per cent of all

cardamom traded worldwide, while India supplied 30per cent and the other

9 Mountain Research and Development Vol 26 No 2 May 2006: 131–137 10 Masayanyika SWS. 1995. Linking Conservation with Livelihood Security: The Case of East Usambara Mountains, Amani Division, Tanga Region, Tanzania

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cardamom-producing countries 6 per cent .11 In 2002, Tanzania produced 560 tonnes,

which is very little compared with Guatemala’s production of 19,000 tonnes that

year.12 However, latest figures of Tanzania production are not available.

Today, most of the world’s cardamom is cultivated using chemical fertilizers

and pesticides. In Tanzania where smallholder farmers do not use mineral fertilizers

or agricultural chemicals, the promotion of organic cardamom cultivation would

additionally raise the value of the product on the market by up to 30–40. Developed

countries prefer organically cultivated product. So there exsits a better future for

Tanzanian cardamom.13

(4)UGANDA

In Uganda , small cardamom is one of newly introduced high value crops.The

crop can fit well in a range of Uganda’s farming systems and envisioned to improve

farmer’s income..It has a prominent export market situation..In Africa, Tanzania is the

major producer. Opportunities for Uganda farmers to benefit from the growing

international and regional markets. Still 80per cent of the labour force engaged in

agriculture contributes 43per cent of national income; many programmes are

introduced by the Government to improve the lot of poor farmers. The Agricultural

Productivity Enhancement Programme is one of the organizations to promote the

commercialization of cardamom in the country. Almost all the cardamom produced is

marketed with only 0.5 per cent being retained for domestic purpose. Since

smallholder farmers are high and they rarely use inorganic agricultural chemicals, the

11 Ravindran PN, Madhusoodanan KJ, editors. 2002. Cardamom: The Genus Elettaria. Medicinal and Aromatic Plants—Industrial Profiles. 12 Mountain Research and Development Vol 26 No 2 May 2006: 131–137 13 Mountain Research and Development Vol 26 No 2 May 2006: 131–137

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promotion of organic cardamom cultivation would raise the price of the product 30-

40per cent. 14

(5) LAOS

There are records on cardamom planting in Laos more than 40 years ago, but

more intensive planting began between 1975 and 1980. In general, cardamom is often

grown in "forest gardens" in the Southern parts of Lao PDR and in the North often

just collected from the forest or fallow. In those areas, wild cardamom is mostly

regarded as village- owned by the village, and cultivated regarded as family-owned.

However, the local cardamom production is decreasing due to low yields and the

expansion of coffee and rubber plantations in Pakxong, Bachiang and Lao Ngam

districts in recent years. The yield of the planted cardamom in Bolaven Plateau is only

20 Kg per ha. However, the yield can be increased to 50 –100 Kg through proper care

of the plants. The price of the Lao wild cardamom (black and white cardamom) is

about 25,000 – 35,000 kip per Kg (8000 kip per one USD) in recent years. The yield

of the green cardamom (Elettaria specie) can produce to as many as 200 kg per ha and

can fetch a higher price of seven USD per one Kg. There will be no market problems

of the green cardamom, as it is highly demanded in international markets. By growing

the green cardamom, the value of the village forest will increase and may prevent the

villagers to sell or lease the land for commercial tree plantation, which are the main

causes of the depletion of the natural forests. It will directly help in the reduction of

carbon emissions. Cardamom is often ranked as the most important source of income

from non-timber forest products in rural upland areas. It is regarded as the second

most important agricultural export product of Lao PDR after coffee .In 1996 the

14 African Crop Science Proceedings Vol.8 pp 1317-1321

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formally registered total export was 461 tons. Cultivation of cardamom is included in

many rural development projects to raise the level of income in later.15

(6) INDIA

Being the second largest producer of small cardamom ,India contribute

around 30 to 40 percent to the world production. Southern Indian especially the

Western Ghats region is the natural habitat of small cardamom in India. Even though

cardamom is foreign exchange earner, engaged in a free regime framework, its

marketing activities are processed through e- auction which is conducted by Spices

Board, where only licenced /registered farmers and traders could able to engage.

Spices Board is empowered to regulate the domestic trading of cardamom (small and

large) and undertake activities aimed at development and promotion of export of 52

scheduled spices including Cardamom. It is responsible for control on quality of

Spices for export and advising the Government on matters relating to import and

export of Spices.

In India as mentioned in the first chapter, domestic consumption is high when

compared to other countries. The following table and figure give a clear picture of the

consumption pattern of cardamom in various regions of the country.

15 Champasak Province – CPA/NRM/03: Integrated Green Cardamom Cultivation Pakxong District, Champasak Province, 30 January 2011

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Table 3.6

Composition of Domestic consumption Cardamom in India

Region 2013-14

Share(per cent approximate)

West India 45

North India 35

South India 20

Source:www.karvycoMTrade.com

35%

45%

20%

West India

North India

South India

Source:www.karvycoMTrade.com

Fig. 3. 6: Domestic consumption Cardamom in various regions in India in 2013-14

(per cent)

According to the Spices Board’s estimate, area under cardamom cultivation is

69870 hectares and production is 15000 MT in 2013-14. The total export of small

cardamom is 2250 MT and import is 495MT in 2012-13 in India. Three states Kerala,

Tamil Nadu, and Karnataka hold the monopoly of cardamom production. Among

them, Kerala ranks first both in production and in area. Almost 76 per cent of

production comes from Kerala as is clear from the following diagram.

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Table 3.7

Percentage share of cardamom producing states in India in 2013-14

Percentage share cardmom(s) producing states(2013-14)

States per cent share

Kerala 78.8

Tamil Nadu 6.5

Karnataka 14.7

Source:ENVISCentre,Kerala(20/08/2015),State of Environment and Related Issues

6.5%

78.8%

14.7%

Kerala

Tamil Nadu

Karnataka

Source:ENVISCentre,Kerala(20/08/2015),State of Environment and Related Issues

Fig. 3.7: Percentage share of cardamom producing states in India in 2013-14

The state wise area and production of cardamom(s) is represented with the

help of the following figure:

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Source: Spices Board

Fig 3.8: State wise area and production of cardamom(s) on an average over the years

in 2000’s

It is clear from the above diagram that the proportion of area and production to

the total remaining the almost the same for the years among the three states. Nine

districts in Kerala producing cardamom according the ‘Farm Guide’,2012. Among

these, almost eighty percent of production comes from Idukki district. Then comes

Wayanad and Palakkadu. The districts producing cardamom in the state of Kerala is

illustrated in the following figure.

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Table 3.8

Area , Production and Estimated productivity of Cardamom in various districts of

Kerala (2010-11 to 2011-12)

Sl.

No. District

2010-11 2011-12

Area

(Ha)

Production

(Tonnes) Productivity

Area

(Ha)

Production

(Tonnes) Productivity

1 Thiruvananthapuram

2 Kollam

3 PathanaMThitta 664 9 14 664 24 36

4 Alappuzha

5 Kottayam 200 11 55 200 12 60

6 Idukki 32723 7323 221 33076 9286 281

7 Ernakulam

8 Thrissur

9 Palakkad 2754 290 105 2754 2384 103

10 Malappuram 70 1 14 70 2 29

11 Kozhikode 220 3 14 220 4 18

12 Wynad 4115 388 94 4120 610 148

13 Kannur 128 128

14 Kasargod 368 1 3 368

State Total 41242 7935 192 41600 10222 246

Source: ‘Facts and Figures of agriculture in Kerala’ Department of Agriculture,

TVM,2013.

Referring Indian Labour Journal (ILJ), there are 131 registered cardamom

estates in Kerala in 2012. 16 and around 20,000 registered cardamom farmers in

Kerala.

16 Indian Labour Journal Vol.54 April 2013, No.4

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Recent developments in cardamom market of Kerala:

Cardamom market is seen firming up on robust demand and restrictions

enforced by imposing a minimum import price for the commodity. As per the new

notification issued by the Department of Commerce, cardamom can be imported only

if the CIF (Cost, Insurance and Freight) value of cardamom is Rs.500/- or above per

kg and on payment of import duty of 70 per cent on CIF value besides meeting the

quality standards specified under FSSAI.

The detailed analysis of the cardamom economy of India is presented in

chapter 5 of the thesis.