The falling prices of cardamom have hit the farmers who are already faced with high cost of labour and increased prices of fertilizers and pesticides.
The average price of cardamom has fallen to Rs.650 a kilogram from over Rs.750 a couple of weeks ago.
According to Josy George, a farmer at Puttady, the prices have fallen to the lowest level in a week and there is the threat of further drop in prices as the new harvesting season will begin in a couple of days following the onset of the monsoon.
ADVERTISEMENT
The prime season for cardamom is June to December and thousands of workers including those arriving daily from the border district of Tamil Nadu are engaged in the cardamom plantations. According to Mr. George, to make the cultivation profitable, at least a price of Rs.700 has to be received.
Farmers expected a bumper crop this season as the weather conditions were mostly favourable. According to K.S. Mathew, a planter, the prices have fallen as there was an expectation of a
bumper crop this season. But the cardamom hill reserve (CHR) areas are experiencing a high temperature after the summer rains that would negatively impact on the production. When the prices fall below the cost of production, it would not be possible to continue in the sector, he said.
ADVERTISEMENT
Highest price
The highest price for cardamom was received in 2010, when it nearly touched Rs.2,000 a kg.
Last year, the price reached Rs.1,400 though the average prices prevailed were at a lower level for most of the season. The high fluctuation of prices in the auction centres was controlled to an extent after they were opened to a large number of businessmen.
It reduced the scope for auctioneers forming a cartel to keep the prices at a low. However, as the season is spanned over six months (with the harvesting done within 45 to 50 days), a high expectation of production could play spoilsport for the farmers.