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Global Scenario
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
Global Scenario
52
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
Global Scenario
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)
Global Scenario
54
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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55
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
Global Scenario
56
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)
Global Scenario
57
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)
Global Scenario
58
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.
Global Scenario
59
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,
Global Scenario
60
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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61
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
Global Scenario
62
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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63
• 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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64
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
Global Scenario
65
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
Global Scenario
66
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.