Recent weather challenges have driven cardamom prices significantly higher in India. As temperatures climb and rainfall diminishes, the spice's production has faced substantial setbacks, pushing market prices upward.

Rising Prices Amidst Climatic Challenges

In early March, cardamom prices ranged from $15,60 to $16,80. However, due to sustained high temperatures and insufficient rainfall over the last three months, prices have escalated to a remarkable  $24,00. The optimal temperature for cardamom cultivation hovers around 34-35 degrees Celsius. But the recent surge beyond this range has led to severe crop stress.

Impact on Crop Health

The extreme heat has caused critical damage to cardamom plants, drying out tillers and panicles—parts essential for the plant's growth and seed production. This damage not only affects this year's yield but also poses a threat to the next season's production. Previously, planters relied on their own water resources for irrigation. But the intense heat has depleted water levels, further complicating the irrigation process.

Market Conditions and Farmer Challenges

Despite rising market prices, the majority of the farming community has not benefited significantly. Instead, the price increase has favored traders who had previously stocked up on cardamom during price dips. Additionally, fears of further price declines with the onset of summer showers. This has led many small traders to hold back on purchasing the spice. Potentially missing out on the current price surge.

Future Outlook

The damage to the current year's cardamom crop is estimated at 20%, with concerns that this could increase if the scarcity of rain continues. Looking ahead, the market's demand is currently subdued following Ramadan but is expected to rebound in the July-August period, coinciding with the next harvest season. The success of this season heavily depends on the return of consistent rainfall.

International Market Effects

On the international front, drought conditions in Guatemala have severely impacted its cardamom crop, leading to a sharp decrease in production from 54,000 tonnes last season to just 30,000 tonnes this year. This global reduction has aligned international prices more closely with those of Indian cardamom, affecting both local and global market dynamics.

Cardamom prices are at a critical juncture, influenced by environmental factors and global market trends.