Cardamom market to be monitored
10-Aug-2024 01:03 PM
The market for small or green cardamom may witness low arrivals and high prices this year as its crop has suffered heavy losses due to adverse weather and natural calamities in the most prominent producing state- Kerala.
On the other hand, the crop has also been badly damaged in Guatemala. In the coming months, the situation of its supply and availability in the domestic and global market is expected to remain quite complex, due to which the price level may remain high.
The demand for this aromatic spice has started gaining momentum in India as Disawari traders and stockists have started showing activeness in its purchase to meet the festive season consumption. But sufficient stock of goods is not available in the producing centers right now.
Although last year there was a good production of small cardamom in the country, but most of it has already been traded.
Generally, the plucking and preparation of the new crop of cardamom in India starts from June-July, but this time the weather did not allow it.
In Kerala's most important producing district- Idukki, there was lack of rain and high temperature for the first five months of the current year, which created a serious crisis of drought.
It is worth noting that for better production of cardamom, good pre-monsoon rains are necessary, otherwise there is a risk of the vines drying up.
This time the vines dried up in many areas and the remaining area also reported less grains. Broadly, a massive decline of 40-50 percent in cardamom production is being feared.
In the international export market of small cardamom, India mainly faces a tough challenge and tough competition from Guatemala, which is its most important producer and exporter in the world.
But there is a report of heavy damage to the cardamom crop due to the serious crisis of drought caused by El Nino, which has led to an increase in prices.
Major importing countries were looking at India with hope this time, but the situation here is not good either.
Prices have started rising in the auction centers. If producers try to suppress their stocks then the price of cardamom may rise further.