The market for big cardamom is currently experiencing irregular auction schedules due to adverse weather conditions, particularly floods in central-producing states like Assam and unfavourable weather in Meghalaya. These disruptions have led to weak spot sales, with potential price increases contingent on improved sales in the coming days. Recent heavy rains have severely affected Assam and other northeastern states, including Meghalaya, causing floods and damaging crops.

The upcoming big cardamom crop is at risk due to these unfavourable weather conditions. Consequently, there is a noticeable shortage of big cardamom in domestic markets, leading to price fluctuations. Currently, the local wholesale prices for Jhundivali and Kainchi Cut big cardamom have dropped.

Production Challenges

The main reason for the higher-than-normal prices of big cardamom is the anticipated weaker second crop, following an already poor first crop. This season, unfavourable weather conditions, including higher-than-normal temperatures and insect infestations, have significantly impacted the crop's growth. Reports indicate a potential 60-70 percent loss to the big cardamom crop, resulting in much lower-than-normal availability in the domestic market. Continuous unfavourable weather conditions in major producing areas further exacerbate these challenges. The latest auction held on July 11 showed an average price increase for big cardamom. However, despite this rise, the overall market remains unstable due to the production above and weather issues.

International Market Impact

The big cardamom crop in Nepal has also suffered heavy losses. The import cost is higher than usual and is expected to increase further. Similar crop damage reports have emerged from Bhutan and Sikkim. In the initial months of the current financial year 2024-25, India exported 152.39 tonnes of big cardamom. This is a significant increase from the 44.27 tonnes exported during the same period last year. The key to stabilising and potentially increasing big cardamom prices lies in boosting sales. With current domestic and international challenges, market stakeholders must focus on improving sales volumes to offset production shortfalls. The anticipated good festival season and potential retail market stability could provide the needed boost to sales.

The big cardamom market is experiencing uncertainty caused by adverse weather conditions and production challenges. While prices have fluctuated due to weak sales and limited availability, the potential for a price rise exists if sales improve. To stabilise the market, stakeholders must focus on increasing sales volumes. As weather conditions remain a critical factor, ongoing monitoring and strategic adjustments will be essential to navigate this volatile market.