Bangalore: Investment in commodity gave fruitful returns to trader and investors in 2012. Last year, till December 6, agricultural commodities, precious metals, spices and base metals have returned 20 per cent, 17 per cent, 10 per cent and 9 per cent, respectively, reports Business Insider.

But will the rally continue in 2013 and give positive returns to commodity investors? Yes, say experts. "The year 2013 is expected to be more positive than this for some commodities," says DK Aggarwal, Chairman and Managing Director, SMC Investments and Advisors.

Cardamom

In 2012, between January 2 and December 6, price of cardamom surged over 60 per cent to 964 per kg. Vibhu Ratandhara, assistant vice president, commodity, Bonanza Portfolio, is bullish for 2013 as well. Cardamom is likely to give positive returns to investors till June due to production shortfall. Traders say production in the current season is likely to be 10,000-12,000 tonnes, 30-40 per cent lower than last year.

In foreign countries, there is huge demand for Indian cardamom. Countries like North Africa, West Asia and Saudi Arabia import cardamoms from India.

More: How to Invest In Commodities in India?

Exports from India have been increasing over the years, according to the Spice Board. India exported 500 tonnes Cardamom S variety in 2007-08. In 2010-11, the figure was 1,175 tonnes. In 2011-12, it is expected to be 4,650 tonnes.

There is another reason which can lead to price rise. "Cardamom production in Guatemala was hit by bad weather and an earthquake in November. Production was projected at 23,000-25,000 tonnes. Now, it is expected to be 19,000-21,000 tonnes," says Ratandhara. Guatemala is the world's biggest producer and exporter of cardamom.

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