Crisis in West Asia raises payment concerns in Kerala’s cardamom sector

Cardamom plantation in Idukki. | Photo credit: Sandeep Vellaram

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

Cardamom growers have expressed serious concern over the prolonged delay in receiving payments from bidders. Auction houses typically cleared fees to growers within 15 days; currently, payouts take more than a month.

Exporters attribute the lack of cash directly to geopolitical tensions in West Asia.

Check-in delay

“Earlier, shipments to Gulf countries were cleared within seven days. Now it takes 60 to 70 days as shipments face unexpected delays in transportation and clearance,” said Santhosh Allus, a Kumily-based cardamom exporter. “This is a roughly ₹ 4,500 crore industry and cash flow constraints have a cascading effect on all stakeholders.”

Mr. Allus added that while many growers are aware of the prevailing export crisis and are cooperating with auctioneers, rigid payment enforcement risks failure. “If growers insist on immediate settlement, only buyers with deep liquidity can participate in auctions. This would force auctioneers to reject lots or limit trade, which would inevitably trigger a price collapse,” he explained.

The problem is the surge in cardamom prices this season, said Joshy Joseph, public relations officer of Spice More Group, an auction company licensed by the Spices Board.

“When prices were lower, three or four big groups were comfortably buying significant volumes,” Mr Joseph said. “With floor average prices now crossing ₹3,000 per kg, procurement requires significantly higher working capital. Many smaller business groups have entered the bidding ring, slowing down the collection cycle,” Mr Joseph said.

Complaint received

Spice Board Chairperson Sangeetha Viswanathan confirmed that the board had received a complaint from a grower regarding unpaid auction fees.

​”I have sought an urgent report from the Spices Board local offices at Puttady (Idukki) and Bodinayakanur (Tamil Nadu). Officials have been asked to submit their findings within two days. Once the reports are available, we will initiate necessary action,” Ms. Viswanathan said on Thursday, adding that the board would also conduct sensitization drives among auctioneers to ensure timely settlement.

Business sources noted that the closure of banking and markets in northern India during the Pooja and Deepavali festival seasons further contributed to the temporary liquidity squeeze.

Published – 31 Oct 2026 06:11 IST