Despite the possibility of a huge drop in production, the price of cardamom softens

26-Aug-2024 11:49 AM

Kochi. Due to heavy damage to the crop due to adverse weather conditions in the major producing areas, there is a possibility of a massive drop of up to 50 percent in the production of green (small) cardamom during the current season,

due to which its market price should have been high and strong, but on the contrary, a softening of prices is being seen.

There is news of the cardamom crop being destroyed in Idukki, the most prominent producing district of Kerala.

In view of the possibility of a huge drop in production, the producers were expecting the price of small cardamom to jump to a new record level, but the market movement is contrary to this.

The average price of small cardamom had reached a high of Rs 2568 per kg in June, which fell to around Rs 2100 per kg by the third week of August.

This time there was a delay in the plucking and preparation of the new crop. Producers fear that when the new crop starts arriving in September, the price of cardamom may fall further.

In an auction held last week, the average price of cardamom was recorded at Rs 2102 per kg and the highest price at Rs 2578 per kg.

A total of 52,343 kg of cardamom was offered for auction, out of which 51,518 kg was sold. This clearly indicates that buyers are still interested in buying cardamom.

According to producers, due to severe drought in the pre-monsoon season, the cardamom crop was destroyed to a large extent.

Till June, there was a positive trend in prices and it seemed that soon it would jump to Rs 3500 per kg. But within a few days the price came down.

As a result, many producers have slowed down the pace of selling their previous stock. It is understood that at present, more low quality goods are arriving at the auction centers. Good quality goods may start arriving from October.