IGI Logo

Cardamom production is expected to drop by 40% this harvest season due to extreme weather conditions. The crop initially faced a drought from February to May, followed by torrential rains from June to August, which aggravated fungal outbreaks and further affected productivity. High prices above ?2,000 per kg reflect the current supply shortage, but market demand remains tepid. Exporters face difficulties with Indian cardamom in the global market due to competition from Guatemala and volatile pricing. Domestic demand has been subdued, with only a potential recovery expected after November, and market stability is challenged by ongoing geopolitical tensions.

Key Highlights

# Cardamom production may drop by 40% this season.

# Prices currently range between ?2,000-2,300 per kg.

# Extreme weather has severely affected plant health and yields.

# Indian cardamom struggles in export markets due to high prices.

# Market demand is low, with a potential price recovery post-November.

Cardamom prices are currently hovering between ?2,000 and ?2,300 per kg, reflecting the severe supply shortage. The reduction in production by approximately 40% is a result of a prolonged drought from February to May, followed by heavy rains from June to August that spurred fungal outbreaks. The scarcity is evident at auction platforms, where 60-70% of arrivals are from last season’s crop, indicating that fresh produce is in short supply. Traders remain cautious, catering only to essential market needs due to high prices.

The supporting factors for the price performance include significant damage to plantations, where extreme weather has not only harmed the plants but also delayed the first harvest. The drought stunted growth, while heavy winds and rain further devastated the fields, leading to one of the worst years for cardamom farmers. As a result, production estimates have dropped significantly from the previous 25,000 tonnes.

Amid these challenges, other news highlights include the struggle of Indian cardamom in the export market, particularly in the Gulf, where Guatemalan cardamom presents stiff competition. Local demand has also remained subdued due to financial constraints and higher prices, while the expected Diwali demand failed to uplift the market. Exporters face uncertainty, especially as tensions in West Asia impact international trade.

Finally

Cardamom's price trend is likely to remain volatile in the short term, with potential recovery anticipated after November as fresh supplies enter the market.

Above views are of the author and not of the website kindly read disclaimer