Discontent mounts in Idukki as cardamom market crashes

Last Updated : 24 June 2011 at 18:10 IST
IDUKKI, KERALA(Commodity Online): Discontent among cardamom cultivators in Idukki district in Kerala is reaching its zenith as markets crashed for this globally traded commodity in recent months. The Spices Park facilities owned by India’s Spices Board in Idukki are regularly witnessing farmer protests, processions and traffic disruption.

Farmers have alleged that cardamom auction prices are being quoted low this year and Spices Board is not taking any initiatives to revive prices.

They have alleged irregularities in e-auctions--an electronic auction facility by which cardamom is being sold by the farmers to traders.

But all these allegations were denied by a Spices Board official in a recent news paper report.

On Thursday, cardamom arrivals in the auction centre at Idukki totalled 34660 kilograms which quoted a maximum price of Rs.971.50 and an average price of Rs.768.02. A year back, the arrival figures stood at 14854 kilograms of which 14592 kilograms was sold, entailing a maximum price of Rs.1700 and an average price of Rs.1493.07.

The Board has denied cardamom prices have declined sharply and termed the movements in prices as usual fluctuations.

According to Charles J. Kithu, Director Spices Board, an uptrend in the prices of cardamom is visible following Thursday’s trend. Charles added that all warehouse activities like clearing and sorting of cardamom have been proceeding without a halt in Idukki.

Regarding the issuance of loans against warehouse receipts, he informed that certain internal problems with the bank playing as a deterrent which has been addressed lately.

A meeting of stake holders has been convened for next week in the Chief Minister’s chamber in Trivandrum.

But what do the farmers want the government to do? When this question was posed to M.K. Scaria, President Cardamom Growers Association, a farmer community in Idukki, he had the following suggestions:

--The State government should submit project proposal and get a ‘Price Stabilisation Fund’ sanctioned for cardamom from the Centre. This should be Rs.250 crore fund. The Swaminathan Commission had proposed a fund as a part of the 2006 Idukki package for cardamom farmers.

--The government can also source cardamom from farmers and distribute it on a subsidised basis on festive occasions through the PDS (Public Distribution System). This can be implemented on a pan India basis.

“A similar plan was implemented in 2010 in Tamil Nadu and was one of the reasons in driving cardamom prices up last year.”, he concluded.

Regimon Njallani, a cardamom farmer in Idukki said, “if the present trend continues and the market fails to revive, cardamom cultivation will become unviable and it may be wiped out of the market of Idukki...the grading, processing auctioning and warehouse receipts facilities are denied for farmers.”

Cardamom is a major item in the export basket of India; and in Kerala alone, about 30,000 farmers are engaged in its cultivation.

On the MCX, cardamom July futures this week opened at Rs.819.90 and was seen trading at Rs.870 on Friday evening.

As published in: http://www.commodityonline.com/news/Discontent-mounts-in-Idukki-as-cardamom-market-crashes-40279-3-1.html