The genus Cinnamomum

300 M.S. Madan and S. Kannan
Table 12.15 Item-wise export of cinnamon and cassia products from India (1989–90 to 1998–99)
Year Whole Powder Oil Oleoresin
Qty Value Qty Value Qty Value Qty Value
Cinnamon
1989–90 70.26 23.43 – – – – 0.05 0.31
1990–91 4.66 1.85 – – 0.03 16.15 0.06 0.42
1991–92 8.4 4.50 15.5 5.26 0.1 15.80 0.3 3.16
1992–93 0.0 0.00 0.0 0.00 0 0.00 1.5 18.35
1993–94 0.4 0.22 5.0 0.38 neg 2.20 0.1 0.88
1994–95 0.61 1.09 0.4 1.20 neg 17.00 0.1 0.98
1995–96 2.48 0.58 0.0 0.00 0.5 3.13 0.52 3.99
1996–97 8.13 7.06 1.8 1.12 0.08 0.60 1.1 35.73
1997–98 1.85 3.30 1.93 3.18 0.09 1.03 0.11 3.46
1998–99
Cassia
1.41 2.02 2.2 1.30 1.14 12.55 0.54 13.63
1989–90 512.7 37.68 67.0 1.47 – – – –
1990–91 544.73 47.26 142.06 5.93 – – – –
1991–92 957.7 146.59 805.6 485.38 0.0 0.00 0.0 –
1992–93 20.5 10.35 1549.8 145.77 0.0 0.00 5.3 169.24
1993–94 1442.7 61.68 805.4 34.96 2.0 77.62 12.4 45.60
1994–95 617.5 25.95 265.0 19.42 0.6 14.27 neg 0.03
1995–96 3733.95 246.11 65.74 10.44 1.38 9.47 4.06 28.84
1996–97 3159.09 277.02 289.98 48.65 0.74 4.00 1.93 48.13
1997–98 932.9 63.11 186.6 98.73 1.63 49.67 9.65 321.32
1998–99 60.04 16.15 1114.0 781.78 0.02 0.65 15.55 604.14
Note
Qty in tonnes, value in Rs Lakhs.
• Sri Lanka’s prices tend to be above the level of the average prices for total imports
because of the higher price of true cinnamon exported by that country. China’s
prices are generally below the average, while Indonesian prices are slightly above
the Chinese prices. In recent years the Indonesian product has earned an above average
price in the world market. This may be because of the increased share of value
added products in the total export.
Price analysis, price formation
An analysis of the structure and behaviour of farm prices is of considerable interest in
the context of finding ways and means for increasing production and productivity.
Prices often act as a guide to indicate the change in production decisions. Cinnamon is
a moderately storable export commodity. Long-term storage is not possible as in the
case of black pepper. In the absence of year to year violent fluctuation in production,
the domestic price of the commodity is totally dependent on international price.
For marketing, cinnamon and cassia are graded according to quality. Though the producer
does not have any idea of the oil content of his produce, the general trend is the
higher the essential oil content, the better the price. Grade A cinnamon has the highest
oil content – at least 2.75% and up to 4%, with a better flavour and aroma. The length
of the quills is another factor that decides the quality and price. In Sri Lanka rolled and