Fundamental Analysis of Cardomom

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FUNDAMENTAL ANALYSIS OF CARDAMOM

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SHEENA K(2011-31-110) NEENU P JOY(2011-31-111)

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Introduction

Cardamom (Elettaria cardamomum Maton) is the 'Queen of Spices' as it is one of the most exotic and highly priced spices The two major commercial varieties of small cardamom in the world are the Malabar and the Guatemalan World production of cardamom is estimated at 30000 -35000 MT Guatemala produces nearly two-third 1/4/13 of global cardamom production

Production

Cardamom requires humid and cool climate followed by good amount of sunshine and appropriate rainfall. The main harvest season of cardamom in India is between August-February. Cardamom reaches yielding stage two years after planting.
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There are three distinctive types of

Varieties of Cardamom

Bold Super bold Extra bold Bulk Small Open/ splits Seeds fruit

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The Mysore variety contains higher levels of cineol and limonene and hence is more aromatic. There are many inferior substitutes from cardamom-related plants, such as Siam cardamom, Nepal cardamom, winged Java cardamom, and bastard cardamom.

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Uses

Cardamom is used in adding flavors in both foods and drinks. Cardamom is used as cooking spice Cardamom is therapeutic in nature, broadly used to treat infections in teeth and gums, digestive disorders, throat troubles, skin conditions Oil of cardamom is used in processed foods, tonics, liquor and perfumes.
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In South Asia, green cardamom is

Major producers

Guatemala India Tanzania Sri Lanka El Salvador Vietnam Laos Cambodia

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Major consumers

Saudi Arabia India Pakistan United Arab Emirates Norway Sweden


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Finland Iceland Germany Russia England United States Japan

Denmark

Major exporters

Costa Rica Guatemala Indonesia Brazil

Nigeria India Thailand Nicaragua South Africa

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Indian scenario

2nd largest producer of cardamom Kerala (70%), Karnataka (20%) and Tamil Nadu (10%) are the cardamom growing states in India Production- 12975 MT (2011-12) Area under cultivation- 72320 hectares

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Production in India

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Import into India

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Export from India

Export target (2012-13) 4000 MT 1/4/13

Monthly price, 2010-11

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Marketing Channel of Cardamom


Disposal of cardamom producer is done mainly three channels:
1.

by the through

Private trade with or without Spices Board License Auction conducted by auctioneers under Spices Board License

2.

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The auctioneers licensed to conduct auction in India

Cardamom Processing Marketing Co-Op Society Ltd (CPMCS)- Kumily, Kerala

Cardamom Marketing Corporation, Vandanmedu, Kerala Mas Enterprises (Mas), Vandanmedu, Kerala 1/4/13

Quality of cardamom

Market Influencing Factors

Production status in competing countries like Guatemala Annual production Weather conditions Domestic consumption and demand Seasonal variations and time of arrival of the crop in the market
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Trading centers

Vandanmedu (Kerala) Bodinayakanur (Tamil Nadu) Kumily (Kerala) Thekkady (Kerala) Cumbum (Andhra Pradesh) Pattiveeranpatti 1/4/13 (Tamil Nadu)

Thodupuzha (Kerala) Saklashpur (Karnataka) Mercara (Karnataka) Medikeri (Karnataka) Mangalore (Karnataka)

Contract specification of Cardamom

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Delivery Delivery Unit 100kg, and direct multiples thereof.

Delivery Period Margin Delivery Centre(s)

35% At Exchange designated warehouse at Vandanmedu in Idukki Dist of Kerala State

Additional Delivery Centre(s)

Bodinayakanur in Madhurai District of Tamil Nadu up to 50 kms of municipal limits. The premium/ discount with respect to delivery centers will be announced by exchange before the launch of contract

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Description

Contract specification of Cardamom


CARDAMOMMMYY 16th August of the previous year to 15th January of the contract year 16th September of the previous year to 15th February of the contract year 16th October of the previous year to 15th March of the contract year 16th November to 15th April of the contract year 16th December to 15th May of the contract year 16th January to 15th June of the contract year 16th February to 15th July of the contract year 16th March to 14th August of the contract year 16th April to 15th September of the contract year 16th May to 15th October of the contract year 16th June to 15th November of the contract year 16th July to 15th December of the contract year

January contract February contract March contract April contract May contract June contract July contract August contract September contract October contract November contract December contract

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MCX Cardamom future price(3/12/12)

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Present scenario

Increased demand and decreased supply in India Production decreased by 40% Production in Guatemala decreased due to adverse weather condition Change in tick price from 50 paisa to 1 rupee.
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THANK YOU

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