Limited Supply Due to Adverse Weather

Big cardamom, a vital spice in global markets, is currently experiencing significant supply disruptions due to adverse weather conditions. Floods and heavy rains in central-producing states like Assam have resulted in irregular auctions, impacting availability and pricing. This article talks about the factors affecting the big cardamom market, providing exporters with essential insights.

Recent floods and heavy rains have severely affected big cardamom-producing regions, particularly Assam and other Northeastern states like Meghalaya. These weather conditions have led to significant damage to the upcoming crop. As a result, spot sales remain weak, and big cardamom prices are expected to stay within a limited range.

Auction and Market Trends

Due to the limited supply, irregular auctions have picked up recently. However, spot sales continue to be weak. In local wholesale markets, prices of the big cardamom varieties Jhundivali and Kainchikat have increased. Despite this rise, a recent decline was noted due to weak sales. Unfavorable weather during the growth season has caused substantial damage to the big cardamom crop. Estimates suggest a 60-70 percent loss to the first crop, with similar expectations for the second crop. Higher-than-normal temperatures and insect attacks have further exacerbated the situation. Consequently, domestic availability remains significantly below normal levels.

International Impact

The adverse weather has impacted India and neighboring countries. Nepal, Bhutan, and Sikkim have reported significant crop losses. In Nepal, 500 to 1000 sacks of big cardamom are arriving daily. The costs are higher than usual and are expected to rise further. Despite the challenges, India's significant cardamom exports have shown resilience. In the initial months of the financial year 2024-25, a total of 152.39 tonnes were exported. This marks a significant increase from the previous year's 44.27 tonnes. This growth highlights the demand for big cardamom despite supply constraints.

The big cardamom market is undergoing challenging times due to adverse weather conditions affecting production. Exporters need to stay informed about market trends and potential supply disruptions. While current prices reflect the limited supply, increased sales in the coming days could drive prices higher. Exporters should monitor weather conditions and auction trends closely to make informed decisions.