Lack of rain in Guatemala is likely to affect cardamom production

01-Jul-2025 08:11 PM

Kochi. There is a possibility of significant damage to the cardamom crop in Guatemala, a major producer and exporter of small cardamom, due to prolonged dry weather and lack of good rains.

The plantations have started showing signs of stress, and the crop is struggling to recover. In view of the potential decline in production, prices in Guatemala are expected to rise, which could bring the export offer price of Indian cardamom to a more competitive level.

Cardamom produced in Guatemala, located in the central part of North America, is generally of lower quality compared to Indian cardamom and is therefore cheaper.

Labor costs are also lower in Guatemala. Meanwhile, in India’s key producing state, Kerala, the cardamom crop has benefitted significantly from abundant rains in May and June, leading to expectations of higher production. This may improve the supply and availability of cardamom both domestically and in global markets.

Countries in West Asia and the Gulf region are the main markets for cardamom, and both India and Guatemala target these regions.

Despite its lower quality, Guatemalan cardamom has an edge due to its lower price. However, if price parity is achieved or the price gap narrows, Indian cardamom could become the preferred choice for importers.

In India, harvesting and preparation of the new small cardamom crop will begin in about two weeks, with increased supply expected from August.

This could present a favorable opportunity for India to boost exports in the global market. On the other hand, harvesting in Guatemala may be delayed and the crop quality may suffer. If Indian exports gain momentum, domestic market prices for cardamom may also strengthen.