Spices Board Chairman Dr. A Jayathilak shares production, sales across regions, and current market performance of Indian cardamom in international markets
Where is cardamom sourced from and sold?
The Western Ghats, Kerala, Karnataka and Tamil Nadu are the major producers of small cardamom. On an average, 10 to 20 percent is exported (though there have been higher exports during some years) and the rest is consumed domestically.
E-auction is the primary channel for domestic sale of cardamom, which is further routed to the domestic and international markets. (The daily auction sales report is uploaded on the Spices Board website). During the previous crop season (August 2012 to July 2013), 15,965 tons of cardamom was sold through e-auction. The current crop season has witnessed an upsurge in the e-auction arrivals of cardamom with a sale quantity of 17,188 tons till March 2014. With another quarter left and with prices prevailing at a higher level, the current crop season poses a promising prospect to cardamom growers.
What are the main uses of cardamom?
In the domestic market, cardamom is used in curries, cakes, sweetmeats, dessert preparations, pickles and savoury dishes. It is a common flavouring agent in both food preparations and drinks, and a favourite after-meal mouth freshner. It is also used as an ingredient in health foods, medicines, and beverages. North India is the major consumer, with New Delhi being a major market. In most northern states, cardamom is an integral part of the cuisine, and is associated with major festivals of the region.
What are cardamom’s other usages?
Cardamom is used in processed foods, cordials, liquors, perfumery. and cosmetics for flavouring and fragrance in the form of extracts, oleoresins and essential oils, through steam distillation and solvent extraction of the dried ripe fruit. The principal constituents include terpinyl acetate and cineol, limonene, sabiene, linalol, linalyl acetate, pinene, zingiberene, among others. The extracts are used in Bakery (cakes, cookies), Dessert, Confectionary (candy, chewing gum) and Personal Care (toothpaste, fragrance) applications. Usage of cardamom in Neutraceuticals and Ayurvedic medicines is on the rise. Cardamom usage as a flavour is also growing. These non-conventional applications contribute to the future prospects of Indian cardamom.
What is cardamom’s current positioning in international markets?
Cardamom is considered the queen of spices, with India producing the best quality cardamom that dominates the international markets. The Middle East continues to be the major export market, where cardamom is used extensively in the preparation of ‘kahwa’ – a drink which is a symbol of hospitality in every home, and is also widely used as a flavouring ingredient in whole and ground form. In Asia, it adds a lingering flavour to most cuisines – both traditional and modern. In Scandinavian countries, it is used in baked products and in confectioneries. In Europe and North America, it is an ingredient in curry powder and in some sausage products.
In the domestic markets, consumption has been steadily on the rise, and India continues to be the largest consumer market. This is certainly a big advantage for Indian growers.
What are the concerns and challenges?
While Indian cardamom rules the international market due to its intrinsic qualities and physical properties, flavour, lighter weight, oil content, etc, Guatemalan cardamom, which lags behind Indian cardamom in terms of these features, is widely traded in the international market, and at times even labelled as Indian cardamom in international retail markets. This not only misleads consumers, but hampers the brand value of Indian cardamom, which is far superior.
So, there is need for unique positioning of Indian cardamom as a premium product, highlighting its various intrinsic qualities rather than trading it as a commodity. Along with this, product traceability and brand image has to be built up for the product. This will create an elite target audience for Indian cardamom, and will help to widen the export market for Indian producers.
What are the production constraints of cardamom?
Varying climatic conditions are the biggest constraints of cardamom production. The cardamom plant is highly sensitive. Excessive rain or prolonged drought causes decreased production. To achieve a sustainable production level, balanced climatic conditions are needed. Micro climatic conditions that prevail in the cardamom ecosystem, often favour unsolicited intruders like pathogenic microbes to proliferate and inflict damage to the plants, which also suffer attacks from various pathogenic microbial agents, of which fungi, thrips and stem borers are a major concern.
What are the parameters for pricing?
A key challenge faced by the industry is the highly fluctuating prices of cardamom. The cardamom plant is affected by excess or shortage of rains, so production increases or decreases rapidly. This causes fluctuation in prices, which in turn pose a major threat to the farmers. In the export markets, we are facing threat from Guatemala, which is the world’s largest producer of cardamom. Guatemala has a certain advantage as its climate allows production of cardamom all the year round, unlike India’s unpredictable monsoons. Domestic consumption of cardamom in Guatemala is minimal, which forces the growers to export their entire production; thereby triggering cut throat price competition.
High production cost is also a setback for Indian growers. Rising labour cost in India and corresponding shortages of labour during the harvest seasons, at times, affect the competitiveness of the Indian small cardamom industry.
What steps is the Spices Board India taking to position Indian cardamom more strongly?
The Spices Board India is taking various steps for the promotion of cardamom. It is conducting various programmes on a regular basis among the stakeholders for implementing IPM and GAP in cardamom cultivation, for pre- and post-harvest management, and for quality improvement training. For the Indian small cardamom industry to remain competitive in the global market, we must be able to cater to the safety and quality norms and the programmes rolled out by the Board as envisaged. The Board also facilitates forward integration of cardamom growers by enabling co-participation in major trade fairs, and thereby providing them a platform to build business relationships with exporters and upcountry buyers.
How has attention to packaging enhanced the Indian cardamom’s value in international markets?
In the international markets, where stringent regulatory norms are set by importing countries, high quality packaging is the need of the hour. The Spices Board India assists exporters to improve their packaging and develop modern packaging for increased shelf life, increased attractiveness and visibility, reduced storage space, customer friendly opening and closing, and overall better presentation of Indian spices in markets abroad.
Scientifically devised and qualitative packaging would not only keep the product safe, but also promote sales. Better packaging will reduce risk of contamination and damage during transit. With the continuous assistance from the Spices Board, the cardamom industry has stood the test of time, and has evolved with a wide array of products and packaging formats that cater to the needs of the international market.
