Stockists' Activity Slows Down

Stockists of big cardamom in the domestic markets are currently worried. With the new crop stockist activity has slowed, leading to sluggish sales. As a result, there is no expectation of a long-term price rise for big cardamom before the new crop arrives.

Due to light buying by stockists, big cardamom Kainchi Cut improved marginally by $17,64/$17,76 per kg in the local wholesale grocery market. Earlier, there was a slight decline in prices. Traders have noted that the sale of big cardamom has remained sluggish for some time, leading to decreased stockist activity. Dayanand Jain, a local trader, emphasized that the biggest concern for stockists is the sluggish sales. Which have further reduced their market activity. With the new crop expected to arrive soon, stockists are hesitant to engage heavily in the market.

Upcoming Crop and Import Challenges

The first crop of big cardamom typically starts at the end of August or the beginning of September, leaving only about one and a quarter months until its arrival. The recent average auction price of big cardamom had increased slightly to $14,40/$20,40 per kg as of the last auction on July 25th. However, these auction prices are not reflective of the actual market conditions. Where the goods are difficult to obtain at these rates.

India's production of big cardamom is insufficient to meet domestic consumption, necessitating imports from Nepal. Currently, the import price from Nepal is around $18 per kg, while domestic prices remain comparatively lower.

Mr. Jain mentioned that the first crop of big cardamom is expected to be comparatively weak, with an estimated yield of only about 50 percent of the norm. This potential shortfall might lead to a temporary rise of $1,20-$1,80 per kg in domestic markets, but this increase is unlikely to be sustainable. Stockists may wait for prices to decline to around $14,40 per kg before returning to the market.

Overall, big cardamom prices are not expected to see a long-term rise before the new crop arrives. Stockists' cautious approach and anticipated weaker first crop are key factors in this outlook. Current low wholesale prices have boosted exports, but domestic stockists remain hesitant to re-enter the market until prices stabilize.