KOCHI: Smuggling of large cardamom has become rampant in the country as prices surge to unprecedented levels. The illegal transit of the commodity from its chief producing regions of Sikkim and parts of West Bengal to Pakistan, the single largest buyer, has hit the exports.
“As a result of the high prices and shortage, large cardamom is being smuggled to Pakistan via Kashmir,” says Mukesh Sindhwani, managing director of Amritsar-based Shivanditta Mal and Company, a leading exporter of the commodity. The company, which annually exports around 500 tonne, has suffered 70% drop in the business.
During the April-October period, India exported 275 tonne, half the quantity that went out in the same period last year. In 2009-10, the total large cardamom export touched 1,000 tonne. “Lower crop has prompted a lot of speculation in the market which is driving the prices up,” said Bharat, proprietor of exporting firm Laxmi Enterprises.
The wholesale prices have moved up to around Rs 1,000 per kg while the retail prices are hovering around Rs 1,300 per kg. It seems to be going the way of small cardamom which peaked at Rs 1,700 per kg during last season.
Spices Board chairman VJ Kurien told ET that a shortfall in production in the main growing region of Sikkim has led to soaring prices. Climatic change coupled with thrust given to tourism has led to a decline in the crop output. “The interest of people in farming is on the wane and they are after tourism that offers better paying jobs,” Mr Sindhwani said.
Big infrastructure projects are eating into cardamom growing area, a Spices Board official said
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