Floods send prices of spices skyrocketing

The price of a few spices are already skyrocketing due to supply shortage and increased demand of the products.
Due to landslides, even assessment of the extent of crop damage in Kodagu may take three months | Express
Due to landslides, even assessment of the extent of crop damage in Kodagu may take three months | Express

DHARWAD/BENGALURU: The flood havoc in Kerala and Kodagu and other Malnad districts in Karnataka has started to impact the spices market. The price of a few spices are already skyrocketing due to supply shortage and increased demand of the products.

The scarcity in spices like green cardamom, black pepper, clove, nutmeg and others have escalated and may soon become a burden on the common man’s pocket. However, sources in Spices Board said that the current price rise was due to the losses suffered by some merchants whose products stored in warehouses were damaged during the flood. The actual impact on prices due to crop loss caused by torrential downpour will take a few months to surface.

According to Suresh Rathod, a spice trader, nearly 60 per cent of the crop has been washed away in the flood-affected areas. “Goods stored in warehouses have been damaged due to flood water. Due to floods, there hasn’t been proper supply of spices and the people who are aware of the situation are buying more to wade over periods when prices will be high,” he said.

Satish Shankar Male, another trader, said, such a hike in prices was being observed for the first time in over ten years. “These commodities can be imported from neighbouring countries like Sri Lanka, but the cost would be more,” he said.

P M Suresh Kumar, Director (Marketing), Spices Board, said that there has not been a significant change in the prices as of now. “However, I cannot comment on how the prices will vary over time due to the floods,” he said, responding to a question. An official of the Board - who did not wish to be named - said that the prices were likely to increase in the coming months as supply of the product dwindled due to crop loss.

“The damage to black pepper and cardamom crops in Kodagu, Shivamogga, Chikkamagaluru and Hassan districts has been extensive. Due to landslides, even the assessment of the extent of crop damage may take three months,” he said. The Board is currently surveying the extent of losses, he added.

Karnataka Chamber of Commerce and Industry secretary Vinay Javali said that around 75 per cent of Green Cardamom is grown in India and supplied to various parts of the globe. “Among the States, Kerala grows the majority of the crop followed by Karnataka,” he said, indicating that prices may go up in the coming days. “It will take three to four years for the situation in the estates to return to normalcy. Governments should take steps like importing the spice to meet the local demand,” he added.

104 officials start survey of crop loss in KODAGU
Madikeri: Kodagu district agricultural department, following bountiful rainfall in the district in June, had drawn a target of 34,500 hectares for cultivation of paddy and maize in the district. While the department saw constant growth in cultivation in district’s farmlands up till early July, the number deteriorated due to excess rainfall after July. Statistics from the department states while 19,825 hectares of farmlands were cultivated for paddy and maize, 9,460 hectares have been completely destroyed and 348 hectares destroyed by pests and insects incurring an approximate loss of Rs 693 lakhs.  

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