IGI Logo

As temperatures soar and rains remain elusive, cardamom prices climb to ?2000 from ?1300-1400 in March. Plant damage of 20% sparks concerns for future harvests, while export dynamics shift due to Guatemala's crop woes. Despite the surge, farmers struggle as small traders remain cautious amidst volatile market conditions.

Highlights

Price Surge: Cardamom prices have surged to around ?2000, a significant increase from the ?1300-1400 range seen in the first week of March.

Weather Impact: Lower production is attributed to the absence of sufficient rains and rising temperatures, which have reached 34-35 degrees Celsius. This has led to damage in plants, including drying up of tillers and panicles.

Future Crop Concerns: The current plant damage is estimated at 20%, with potential for further increase if areas continue to face scarcity of summer showers. The next harvest season in July-August will depend heavily on continuous rains.

Impact on Farmers: Despite the price rise, the majority of the farming community has not benefited. Small traders are cautious, fearing further price drops with the onset of summer showers.

Export Dynamics: Demand in the market, especially from Gulf nations, has been subdued after Ramadan. However, the drought conditions in Guatemala have significantly affected their crop, aligning prices with Indian raw material.

Market Outlook: Auctioneers anticipate a subdued demand post-Ramadan but expect a pick-up in July-August.

Conclusion

The cardamom market experiences turbulence driven by weather-induced production drops and shifting export dynamics. While prices soar, farmers grapple with uncertainties, and small traders tread cautiously. The looming threat of further crop damage underscores the importance of sustained rainfall for future harvests. As the market braces for fluctuations, the resilience of both farmers and traders will be tested in navigating these challenging conditions.

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