Kerala is a major producer of spices and it is reported that spices exports, unlike other exports, have shown an increase during Covid 19 lockdown largely because of the perception that spices help to improve immunity. This article looks at the price trends to examine this issue as production does not respond in the short term owing to the gestation lag. Along with spices, coffee and tea were also in the limelight  during the lockdown  and  the four crops together account for a major part of the economy of Kerala, especially  two hill districts, namely Wayanad and Idukki.

The four crops - pepper, cardamom, tea and coffee - account for roughly 12 per cent of the net cropped area of the state. But in Wayanad, they account for 80 per cent of the net cropped area and in Idukki close to 55 per cent (Table 1). However, the composition of the crops varies between the two districts. While in Wayanad, coffee and pepper dominate, tea, pepper and cardamom are the predominant crops in Idukki.

Table 1.Area under select crops in Wayanad and Idukki, 2018-19 (Hectares)

    Source: ecostat.kerala.gov.in

Table 2. Average annual prices of select crops, 2010-11 to 2019 - 20 (Rs per kg)

      Source: For Pepper and Cardamom, indiaspices.com; For Coffee, indiacoffee.org;  For Tea,                         teaboard.gov.in

      Note: For Pepper and Cardamom, Average Domestic Prices are shown. For Coffee, All India                        Export Prices are presented. For Tea, Weekly Average Price of the Last Week of December                    is shown.  While for Tea Calendar Year is taken, for other crops Financial Year is                                 considered.

In order to analyze the impact of COVID -19 lockdown on prices of these four commodities, it is essential to examine the price trends over the last ten years. As is evident from figure 1 and table 2, pepper prices follow the old dictum of sharp increase followed by an equally sharp fall. Prices jumped over three fold in around four years, rising by over 30 per cent every year after a large jump of 60 per cent in 2011-12. It remained at that level for the next three years.  Prices fell 32 per cent, 20 per cent, and 10 per cent respectively in the next three years. Almost all the gains were erased over a period of three years; the prices falling back to the levels of 2011-12 in 2019-20.

Figure 1.Annual prices of Cardamom and Pepper, 2010 -11 to 2019 - 20 (Rs per kg)

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