Small cardamom prices expected to remain strong due to fall in production

05-Mar-2025 08:05 PM

It looks like the cardamom market is going through some fluctuations due to various factors like weather conditions and supply-demand imbalances.

Given that small cardamom production is expected to decline in major producing regions like Kerala, Tamil Nadu, and Guatemala, it's likely that prices will remain strong due to reduced supply.

The demand from Gulf countries, especially during Ramzan, also plays a role in keeping the market active.

Even though there was a slight dip in the recent auction prices (from Rs 2807 per kg to Rs 2751 per kg), the overall outlook suggests that prices will stabilize or potentially rise in the future due to decreased supply.

Interestingly, the increase in Guatemala's cardamom prices, which has historically been cheaper than Indian cardamom, could make Indian cardamom more competitive in the global market, boosting exports.

It’s also worth noting that the delay in plucking and preparation of the new crop, along with the ongoing complexities in supply, may further tighten availability, pushing prices up.

It seems like a good time for producers to consider stockpiling cardamom if they anticipate prices will rise further.