Current Market Scenario

Big cardamom sales remain sluggish, causing its price to move within a limited range. Currently, in the domestic wholesale market, big cardamom Jhundivali and Kainchikat are priced at $17,64 - $17,70 and $18,18 - $18,24 per kilogram respectively, after a recent drop of $0,12 - $0,18. Although prices had risen by $0,24 - $0,30 recently, the overall trend remains stable due to limited supply. The monsoon season has commenced in Northeast India, affecting supply and keeping import prices around $18,60 - $19,20 per kilogram. The market expects this sluggish trend to continue in the coming days.

Impact of Weather and Crop Conditions

The primary reasons for the stable prices are the unfavorable weather conditions and pest infestations that have heavily impacted the crop. This season, the big cardamom crop has faced significant losses due to higher-than-normal temperatures and pest attacks, leading to an estimated 60-70% reduction in yield. Both the first and second crops have been weaker than usual, reducing the overall availability of big cardamom in the domestic market. Reports from major producing areas indicate that the weather continues to be unfavorable, exacerbating the situation.

Challenges in Neighboring Regions

Big cardamom crops in neighboring countries like Nepal, Bhutan, and regions like Sikkim have also suffered heavy losses. In Nepal, the average auction price of big cardamom recently rose to $15,00 - $19,35 per kilogram, reflecting the scarcity. Currently, 500 to 1000 sacks of big cardamom are arriving in Nepal daily, with import costs around $18,60 - $19,20 per kilogram. This cost is expected to rise further. Bhutan and Sikkim are also facing crop damage due to similar adverse conditions.

Export Performance and Market Projections

In the financial year 2023-24, India exported 1,281 tonnes of big cardamom worth $17,78 million. This is a significant drop from the previous year's 1,883 tonnes, which generated $16,47 million. The weather in major producing areas is currently not favorable for the upcoming crop, suggesting that the slowdown in spot cardamom prices may persist.

The combination of limited supply, adverse weather conditions, and reduced crop yields points to continued sluggishness in the big cardamom market. Market participants and stakeholders should remain cautious and monitor weather patterns and crop reports closely.