West Asia crisis triggers payment concern in Keralam’s cardamom sector

A cardamom plantation in Idukki.

The ongoing West Asia crisis has disrupted payments to cardamom exporters from Gulf countries, triggering liquidity concerns and widespread uncertainty across the sector.

​Cardamom growers have voiced serious concernover extended delays in receiving payments from auctioneers. Usually, auction houses cleared dues to planters within 15 days; currently, disbursements take over a month.

​Exporters attribute the cash crunch directly to geopolitical tensions in West Asia .

​”Earlier, shipments to Gulf nations were settled within seven days. Now, ittake between 60 and 70 days because consignments face unexpected shipping and clearance delays,” said Santhosh Allus, a cardamom exporter based in Kumily. “This is an industry worth roughly ₹4,500 crore, and a choke in cash flow has a cascading effect on every stakeholder.”

​Mr. Allus added that while many growers recognise the prevailing export crisis and are cooperating with auctioneers, rigid payment enforcement risks backfiring. “If growers insist on immediate settlement, only buyers with deep liquidity can participate in the auctions. That would compel auctioneers to turn down lots or restrict trade, inevitably triggering a price collapse,” he explained.

​Compounding the problem is this season’s sharp surge in cardamom prices, said Joshy Joseph, public relations officer of Spice More Group, an auction firm licensed by the Spices Board.

​”When prices were lower, three or four major groups comfortably used to procure substantial volumes,” said Mr. Joseph. “With minimum average prices now surpassing ₹3,000 per kilogram, purchasing requires significantly higher working capital. Numerous smaller merchant groups have entered the bidding ring, which slows down the collection cycle,” said Mr Joseph.

​Spices Board chairperson Sangeetha Viswanathan confirmed that the board has received a grievance from a planter regarding unpaid auction dues.

​”I have sought an urgent report from the Spices Board field offices in Puttady (Idukki) and Bodinayakanur (Tamil Nadu). Officials have been directed to submit their findings within two days. Once the reports are in hand, we will initiate necessary action,” Ms. Viswanathan said on Thursday, adding that the board will also conduct sensitisation drives among auctioneers to safeguard timely settlements for growers.

​Trade sources noted that banking and market closures in north India during the Pooja and Deepavali festival seasons have further contributed to temporary liquidity constraints.

West Asia / war / unrest, conflicts and war / economy, business and finance