Amomum cardamom

Scientific classification

Kingdom: Plantae

Division: Magnoliophyta

Class: Liliopsida

Order: Zingiberales

Family: Zingiberaceae

A. subulatum (black cardamom)

Amomum compactum (Siam cardamom}

Amomum dealbatum

Amomum is a genus of plant, including several types of Cardamom--especially Black

Cardamom--in the order Zingiberales. Plants of this genus are remarkable for their

pungency and aromatic properties.

Among ancient writers, the name amomum was ascribed to various odoriferous plants

that cannot be positively identified today

Elettaria cardamom

Scientific classification

Kingdom: Plantae

Division: Magnoliophyta

Class: Liliopsida

Order: Zingiberales

Family: Zingiberaceae

Genus: Elettaria

Maton

Species: E. cardamomum

Elettaria cardamomum

The green seed pods of the plant are dried and the seeds inside the pod are used in Indian and

other Asian cuisines either whole or in a ground form. It is the most widely cultivated species

of cardamom; for other types and uses, see cardamom.

Ground cardamom is an ingredient in many Indian curries, and is a primary contributor to the

flavour of masala chai. In the Middle East and Iran, cardamom is used to flavour coffee and

tea. In Turkey, it is used to flavor the black Turkish tea (Kakakule in Turkish).

As well as in its native range, it is also grown in Nepal, Vietnam, Thailand, and Central

America. In India, the states of Sikkim and Kerala are the main producers of cardamom; they

rank highest both in cultivated area and in production. It was first imported into Europe

c.1200 CE.

There are two kinds in cardamom

1) Large cardamom ( grown in Sikkim)

2) Small cardamom ( grown in Kerala, Tamil nadu, Karnataka etc...)

Description of small cardamom

Cardamom of commerce is the dried ripe fruit (capsules of cardamom plant) often referred as

the “Queen of Spices” because of its very pleasant aroma and taste. Cardamom is a perennial,

herbaceous, rhizomatous plant. Based on the nature of panicles, three varieties are recognized

viz. Malabar with prostrate panicle, Mysore with erect panicle, and Vazhukka with semi erect

panicle. Plants are of medium size (2 to 3 mtr height) with pubescent leaves (on the dorsal

side) and fruits globose in the case of Malabar, whereas plant robust (3 to 4 mtr height) with

leaves glabrous on both sides with ovoid capsules in the case of Mysore. Vazhukka variety is

a mix of both the above in physical characteristics.

Origin and Distribution

Cultivation of cardamom is mostly concentrated in the ever green forests of Western Ghats in

South India. Besides India, cardamom is grown as a commercial crop in Guatemala and on

small scale in Tanzania, Sri Lanka, El Salvador, Vietnam, Laos, Thailand, Cambodia,

Honduras, and Papua & New Guinea. The optimum altitudinal range on growing cardamom

is 600 to 1500 mtr above MsL. The cardamom growing regions of South India lies within 8 -

30 degree N latitudes and 75-78 degree longitudes.

Description Cardamom (large)

Large Cardamom is a perennial herb with subterranean rhizomes and 50-140 aerial leafy

shoots. Each shoot has height of 1.7 to 2.6 mtr and possess 9 to 13 leaves in each tiller.

Leaves are glabrous on both sides with a prominent mid-rib. Inflorescence is a condensed

spike with yellowish perianth. Each spike has 10-15 fruits. Fruit is round or oval shape,

capsule with reddish brown colour. Each capsule is trilocular with many seeds.

Origin and Distribution

Large Cardamom is cultivated in the Sub-Himalayan region of North Eastern India, Nepal

and Bhutan. It is grown in cold humid conditions under shade of trees at an altitude between

800-2000 meters above MSL., with an average precipitation of 3000-3500 mm spread over

about 200 days and with temperature ranging from 6-30 degree C.

Cultivation

Today cardamom is cultivated in India, Nepal, Sri Lanka, Mexico, Thailand and Central

America. In India it is widely grown in Kerala, Tamil Nadu and Karnataka. A warm humid

climate, loamy soil rich in organic matter, distributed rainfall and special cultivation and

processing methods all combine to make Indian cardamom truly unique – in aroma, flavor

and size.

Whole cardamom pods come from India while the decorticated seeds are imported from

Guatemala. Indian cardamom is considered to be of premium quality. The Malabar type,

rounded in shape, has a pleasantly mellow flavor generally regarded as superior. The Mysore

type, ribbed and three cornered, has a slightly harsher flavor but retains its original green

color.

Uses

Both forms of cardamom are used as flavorings in both food and drink.

In some Middle Eastern countries, coffee and cardamom are often cooked and ground

together in a mihbaz, an oven using wood or gas, and in a wooden mortar to produce

mixtures that are as much as forty percent cardamom.

All the different cardamom species and varieties are used mainly as cooking spices and as

medicines. In general,

Elettaria cardamomum (the usual type of cardamom) is used as a spice, a masticatory,

and in medicine; it is also sometimes smoked; it is used as a food plant by the larva of

the moth Endoclita hosei.

Amomum is used as a spice and as an ingredient in traditional systems of medicine in

China, India, Korea, Japan, and Vietnam.

In the Middle East and Turkey, green cardamom powder is used as a spice for sweet

dishes as well as traditional flavouring in coffee and tea. It is also used to some extent

in some dish recipes. In Arabic, cardamom is called al-Hayl. In Persian, it is called

hel.

In South Asia green cardamom is often used in traditional Indian sweets and in tea, or chai.

Black cardamom is sometimes used in garam masala for curries. It is often referred to by its

size as being 'Moti Elaichi' or fat cardamom. In Hindi, Urdu, and Gujarati cardamom is called

elaichi, and "yelakki" in Kannada and other South Indian languages. It is called Elakka in

Malayalam, which is the language of Kerala an Indian province that accounts for 70% of

Indian cardamom Individual seeds are sometimes chewed, in much the same way as chewing-

gum.

In Northern Europe, cardamom is commonly used in sweet foods.

It has also been known to be used for making gin.

Cardamom has a strong, unique taste, with an intensely aromatic fragrance. Black cardamom

has a distinctly more astringent aroma, though not bitter, with a coolness similar to mint,

though with a different aroma. It is a common ingredient in Indian cooking, and is often used

in baking in Nordic countries, such as in the Finnish sweet-bread pulla. It is one of the most

expensive spices by weight, and little is needed to impart the flavor. Cardamom is best stored

in pod form, because once the seeds are exposed or ground, they quickly lose their flavor.

However, high-quality ground cardamom is often more readily (and cheaply) available, and is

an acceptable substitute. For recipes requiring whole cardamom pods, a generally accepted

equivalent is 10 pods equals 1½ teaspoons of ground cardamom.

Production and export

1) Nepal has been the world's largest producer of large cardamom.

2) These days, Guatemala has become the world's largest producer and exporter of

cardamom, with a staggering export total of US$137.2 million for 2007.

FARMING PRACTICES AND MARKETING SYSTEMS

1) CULTIVATING AREA

World-

Besides India, cardamom is grown as a commercial crop in Guatemala and on small

scale in Tanzania, Sri Lanka, El Salvador, Vietnam, Laos, Thailand, Cambodia,

Honduras, and Papua & New Guinea.

India –

Kerala, Sikkim, Tamilnadu & Karnataka . where Kerala, Tamil nadu and Karnataka

are known for small cardamom cultivation and Sikkim known for its large cardamom

cultivation.

Tamil nadu-

Theni, The Nilgiris, Thirunelveli, Coimbatore, Dindugal, Virudhanagar, Kanyakumari

and Namakkal, are the districts in hierarchical order known for cardamom production

in Tamil nadu. Where Namakkal and Kanyakumari and with very obviously

negligible area under cultivation. Whereas Theni district being located towards the

border of Kerala state accounts for highest area in Tamil nadu under cardamom.

2) SEASON

Being a perennial crop cash crop it yields all around the year and since it being a high

valued cash crop there are practices followed to ensure yield all around the year. Where

September- November being the high yielding months and May-june being the lean

yielding periods.

3) PRICING

Pricing is a very tricky issue in cardamom trade as the prices are not just dependent on

the market forces of demand and supply. Prices are kept varying on daily basis and

even many times within a day. But it can be brodly inferred that pricing in the tamil

nadu domestic market is basically due to the arrivals on that day and also based on the

the demand pull in the north Indian trade markets.

4) TRADE DIRECTION

From Tamil nadu the direction of trade is towards Delhi, Maharastra And many other

states mainly.

From India the trade direction is towards Saudi Arabia, Japan, and Malaysia.

TRADING PATTERN

1) AUCTION HOUSES

Trading is majority done through auction houses. There are many auction houses

operating mainly in Theni district. With even STCL ltd being one among the

major auction houses located in Bodinayakanur. Each auction house organises

one auction every week and there are 8 such auctions happening every week.

Every day of the week having an auction and Tuesday having two such auctions.

These auction houses work as per the guide lines of Spice board and the board

acts as the regulatory authority of the auctions. The auction houses earn their

share of profits in terms of commissions which is fixed at 1% as per the norms of

spice board . The auction houses are not supposed to collect any additional

charges from the planters beyond the commissions. Only two auctions are held in

Tamilnadu every week, One by Cardamom Planters Association and other by

STCL on Mondays and Thursday respectively. All the remaining auctions are held

in Kerala state.

1) Planters keep their produce in their willing auction centers.

2) The auction centers take a required amount of sample and stock the cardamom

in their facilities.

3) Auction is arranged during that week and traders are invited to come and

participate in the auction.

4) The traders bid the produce by seeing the lot size and also the much required

quality parameters.

5) Once bidding is done the trader is not supposed to take back his bid.

6) The highest bid for each lot is entitled with the owner ship of that lot .

7) Possession of the lot can be taken the next day where the produce is

dispatched within one day time to by the auction house.

8) The auction house makes the respective amount payments to the farmers

within a day of the auction.

9) And traders are given a time period of 14 days to make the payment back to

the auction house and a grace period of 5 more days beyond which the auction

houses are permitted to charge interest rates.

10) For all these actions the house receives a commission of 1% only.

2) TRADERS

The planters also sell their produce to traders and petty traders directly. Where the

prices they get for their produce is completely based on the negotiations that take

place between the two parties of trade. But majority of the planters were

comfortable selling their produce via the auction houses rather than the traders

directly.

3) WHOLESALERS AND TRADERS

Very small and marginal planters usually sell their produce directly to wholesalers

and retailers. They are forced to take this action as they are not able to feed

quantities enough that traders and auction houses generally trade in.

4) FUTURES TRADE

The farmers or traders are not aware of the future trading pattern itself. Even the

few large traders here had no idea of what futures trading is. MCX is present and

trying to make a creep into this high valued commodity market, but still there is a

huge gap to be filled in terms of futures market in this commodity.

Based on all these it is very clearly visible that there is a well established trading

pattern all ready set in with too many traders and petty traders in play. They have

strong knowledge of the market dynamics and also they are well flexed with all

the further trading contacts. There are also few traders who are directly acting as

export agents.

MARKET CHANNEL

PLANTERSAUCTION HOUSES

PETTY TRADERSTRADERS

WHOLESALERSWHOLESALERS (OTHER STATES)

EXPORT AGENTS

RETAILERS RETAILERS

CONSUMERS

INTERNATIONAL MARKET

MARKET DYMANICS

DEMAND

One of the major market force that controls the price is demand. Demand for cardamom in

Tamil Nadu is basically from

1) Domestic markets: The demand for domestic market consumption is not bound to show

much variation and is assumed to be constant in trend pattern over years.

2) Markets in other states: The demand is driven majorly by the demand in other states

like Delhi and Mumbai as the major exporters and other processing demand is driven

from these centres. There are very few large scale exporters and processing centers

located in Tamil nadu itself.

3) Export markets: Export market demand is based on the production levels from other

competitor countries like Nepal and Guatemala. And also the consumption increase in the

world market.

4) Demand from processing sectors: The processing sectors use cardamom basically to

extract oils and essence from it. Majority of the demand is based on the planned

production levels in these sectors. And slightly for other uses like medicines and curry

powders and others like breweries. Etc

There are few exporters in Tamil nadu

AVT, SPGR exporters, S.P Bhagwan and sons, KCPMC Ltd... Etc

Variations if any is basically due to the demand pull from the other states and other

countries as mentioned above. Any change in demand has a direct bearing on price of the

commodity and the well being of the planetrs. From the last few years there has been a

continuous increase in demand seeing to a rise in levels of prices and status of planters as

well.

Cardamom demand is largely based on the yield levels of other countries like

Guatemala and Nepal etc.

Demand dynamics

The demand dynamics hence is not that much varying as the demand for a spice

commodity like cardamom is not seriously fluctuating in considerable amounts. But there

has been a increased trend in demand over years and the trend is continuing.

SUPPLY

The supply is one more important market force which along with demand plays a very

vital role in pricing of any commodity. Cardamom supply is all round the year. But the

volumes of supplies is varied based on many driver like

1) Weather conditions: Proper rains and good favourable weather conditions will lead to

increased supply in markets. If there are no proper rains on time than the yield will be

certainly affected on a large extent which inturn will effect supply.

2) Incidence of pests and diseases: The more the incidence of pests and diseases the less

the supply and vice versa.

3) Price of cardamom in the previous term: If planters have realized better prices for the

same produce last term then the cultivation will be more intensive and hence there will be

more supply in the market in this year for the same season.

4) Season: Cardamom yields all around the year. But the yields volumes do change based

on seasons. This has a direct bearing on the market supply. Cardamom yields highest in

September and October months and yields lean during May and June.

5) Forecasted demand predictions: Based on the forecasted demand prediction in the

coming years the supply varies. If the forecasted demand is high then the yield levels are

increased by use of improved intensive practices which leads to increased supply and vice

versa.

6) Variety used: The age old varieties have lesser yields. The supply increases as more and

more farmers shift to the newer improved variety called Njallani which yields about three

times more than traditional yielding varieties. So more the shift towards such varieties

then more will be the yield increase.

Supply dynamics

The supply is ensured all around the year after the use of the new varieties like Njallani

and other high yielding varieties. By this even the prices are seen to be kept in fray and

there is not too much fluctuation as the varieties yield all around the year in a more or less

similar trend. Therefore the dynamics is not fluctuating considerably and is on par with

the market demand.

PRICE

Price is a tricky factor in cardamom trade. Price is kept varying everyday and also many

times within a day. Cardamom as a spice has very high unit volume price. Based on

various grades and quality parameters the price of cardamom is varying. And also the

market forces of demand and supply are major drivers of price. Price is also highly

dependent on cardamom supply from other countries like Guatemala and Nepal.. etc.

The price is a major fluctuating market force in cardamom. The price has a changing

trend on hourly basis. But when average price trend are seen they generally are increasing

over last few years.

The major drivers of price are

1) Demand: As there is increase in demand for cardamom there is an increase in price

and vice versa. But the demand is not just on cardamom commodity itself. Various

grades have various demands on that day. So the prices are based on the demand for

that specific grade on that day.

2) Supply: The price is also based on the supply on that day. In other terms it is called

arrivals on that day. Based on the arrivals the price is fixed. If the arrivals are seen

low then the prices are fixed high and vice versa.

3) Quality: The price is also based on the quality of that produce. Various grade has

different prices for that day. The quality parameters seen before purchase by the

traders are mentioned below.

QUALITITY PARAMETERS SEEN BY TRADERS

a) Colour: Capsule to be greenish in colour and mature.

b) Size: Size preferably to be large. But various grades have different size

preferences

c) Weight: The weight to be more per unit volume.

d) Aroma: To be slightly pungent

e) Number of seeds: number of seeds to be more than 25 in each capsule.

f) Seed colour: Seeds to be dark black in colour and shiny in look.

g) Less number of splits, chalky and insect infected capsules in the lot

h) And also many other scientific factors like oil content and reject

percentage ETC to be considered based on demand from the higher buyers.

But the colour and maturity is always a trade off as the greenness in colour

means the produce is only 3/4th ripe.

4) Lot size: lot size also plays a major role in price fixation. If the lot size is very small

then the price it coats is lesser. This is because that traders who buy in bulk would

prefer buying a uniform lot of required quality. And smaller lots are generally not bid

for high prices.

Price dynamics

But the price is the only factor in the market force which shows serious and major

fluctuations in the trend. The price usually varies in considerable amounts within very

short periods of time. So planters feel it more like a gamble with luck as they are not

able to predict the prices that they will be able to getting for their produce. The reason

for this fluctuation cannot be accurately reasoned out. But it is majorly attributed to

the demand and auctions that happens everyday. Due to the everyday auctions the

traders buy required lots in parts on daily basis. That is why there is considerable

change in the price trend.

The prices vary between 400 to 1200 in the auction markets. This large variation can

be attributed to the current demand pull and also to the quality and grade of the

produce.

OBSERVATIONS

1) Too many players who are involved in trading of cardamom.

2) Traders and agents are plenty in number.

3) Trading generally happens with lot of illegal activities like frisking and non

payment of taxes.

4) The existing players of cardamom trade are very well active and have a large pool

of contacts for further trading.

5) Trading is tough and risky due to the ever changing price of cardamom.

6) Prices are seen to fluctuate many times with in a day.

7) Grading and value addition activities reap high profits.

8) Traders and farmers are not much active in commodity trading houses or futures

markets.

9) High valued commodity and hence there is more margin of profit.

10) Scope for entry of a new trader is very limited.

MARKET POTENTIAL (DOMESTIC)

1) Based on the observations it is clear that there very less scope for entry as a trader

itself. As there are already large numbers of strong traders existent.

2) Contract farming is not possible as cardamom is a perennial and high valued crop.

3) There is good scope for entry into commodity trading of cardamom.

4) Entering into futures trading is a very possible option. As there is enough capital to

support the stock maintenance of cardamom.

5) There is high scope for value addition and grading as there is high margin for this

small labour intensive activity of grading.

6) There is scope for selling cardamom directly to large units under processing sectors

like MTR, Everest etc. this is possible option as there are very few traders who are

supplying directly to these large buyers.

MARKET POTENTIAL (EXPORT)

1) The potential lies in trading more and more to Saudi Arabia and other middle

eastern countries.

2) Trading to other western nations like USA, UK etc.

3) Export of more value added and processed cardamom products than the whole

commodity itself. This helps in realization of more value per unit volume of

export.

Observation of export details of Cardamom (small)

During 2006-07 India exported 650 tonnes of cardamom (small) valued at

Rs.22.36 crores as against 863 tonnes valued Rs.26.82 crores in 2005-06. the unit

value realization has increased from Rs.310.86 per kg in 2005-06 to Rs.344 per kg

in 2006-07.

Saudi Arabia remained the major market contributing nearly 65 per cent of the

total exports of cardamom (small). In 2006-07 a total of 407 tonnes of cardamom

was exported to Saudi Arabia compared to 511 tonnes in 2005-06. Cardamom

export to Japan has come down to 36 tonnes during the year from 225 tonnes of

20005-06.

Guatemala is the major competitor for India in the international market.

Compared to India’s production level of 12,000 tonnes, Guatemala produces

around 30,000 tonnes of cardamom annually. The congenial climatic condition,

low cost of production and the negligible domestic demand make it possible for

Guatemala to offer cardamom at a very low price. Guatemala satisfies almost 97

per cent of the world demand for cardamom.