Cardamom Prices Surge Driven by Strong Domestic and Export Demand

Kochi. Demand for small (green) cardamom from outstation markets remains robust due to the peak festive season, while export inquiries are also on the rise. Harvesting and processing of the new cardamom crop in major producing regions have gained momentum, leading to increased arrivals at the markets. Last week, the average auction price of cardamom surged to a peak of ₹3,200 per kilogram. Average daily arrivals at auction centers have also risen to nearly 100 tonnes. The markets are bustling with activity, driven by plentiful arrivals and brisk trading.

Green cardamom production is expected to be relatively good during the 2026-27 season. According to a leading auctioneer, while initial indications suggested a lower yield, the current rise in supply volumes points towards a better overall production outlook. Rainfall had been deficient in Kerala's major producing region, Idukki district; precipitation levels there were about 40 percent below the normal average during June and July. However, subsequent good rainfall improved the crop's condition. Excellent production is now anticipated in the region, at least until December 2026.

Nevertheless, uncertainty regarding next year's production—stemming from the threat of El Niño—has left growers in a dilemma. While producers are currently securing attractive prices and wish to capitalize on this opportunity, some are inclined to withhold their stocks.