Price Stagnation Amid Weather Uncertainties

Despite the recent floods in Assam, the wholesale price of big cardamom remains within a limited range. Damage to the new crop due to rain and floods in major producing areas cannot be ruled out. Therefore, big cardamom may continue to move in a limited range in the coming days.

Due to heavy rains, many areas of Assam have recently been flooded, and similar conditions are reported in other Northeastern areas, including Meghalaya. Although there is no confirmed news yet, the possibility of damage to the upcoming crop of big cardamom due to these latest weather conditions cannot be ruled out. Currently, there is a slowdown in the sale of big cardamom in the domestic markets. This is why, in the local wholesale grocery market, the price of big cardamom Jhundivali and Kainchi Cut has recently increased by $0,36 and is currently at $18,00-$18,06 and $18,48-$18,60 per kg, respectively. Recently, it had fallen by $0,12-$0,18.

Weather Impacts and High Import Costs

The main reason for the latest price rise is the sluggish supply. Its imports are also currently around $18,60-$19,20 per kg. The main reason for the price being higher than normal is that. Like the first crop, the second crop is also expected to be much weaker than usual. The unfavorable weather during the growth of the crop this season has led to apprehensions of a 60-70 percent loss to the big cardamom crop.

This time, the temperature in the major producing states was higher than normal during the growth of the large cardamom crop. Additionally, the crop has been attacked by insects, leading to fears of heavy losses of up to 70 percent for the first crop of large cardamom. The second crop is also expected to be weak. As a result, the availability of large cardamom at the domestic level remains much weaker than normal.

Challenges in Major Producing Areas

In the last auction held in the last week of June, the average auction price of large cardamom slightly increased to $15,00-$19,36 per kg. Like India, the large cardamom crop in Nepal has also suffered heavy losses. According to reports, 500 to 1,000 sacks of large cardamom are arriving in Nepal these days. Its import price is currently reported to be around $18,60-$19,20 per kg. This price is higher than normal and is expected to increase further in the future. There are also reports of damage to the crop in Bhutan and Sikkim.

In the financial year 2023-24, a total of 1,281 tonnes of large cardamom worth $17,78 million has been exported from the country. In the corresponding period a year ago, 1,883 tonnes were exported, generating an income of $16,47 million. Currently, the weather in the major producing areas is not favorable for the upcoming crop. Therefore, in the coming days, large cardamom may continue to move in a limited range in the spot market.

The big cardamom market is expected to remain sluggish due to the combined effects of weather uncertainties and sluggish demand. Despite recent price increases due to supply constraints. The market is unlikely to see significant upward movement in the near future.