India’s Cardamom Suffers Crop Damage, How Prices Will Remain Stable?
Floods Threaten Cardamom Crop
Heavy rains and flooding in Assam and other northeastern states have caused significant concern for the upcoming big cardamom crop. As the first harvest nears, reports suggest the weather may lead to substantial crop losses. Many areas, including Meghalaya, have been affected by floods, creating a situation where the big cardamom crop could suffer up to 70% damage.Weak Demand and Falling Prices in Domestic Market
In the domestic wholesale markets, big cardamom prices have seen a recent drop. The Kainchi Cut variety has fallen by $16,80 to $18,60 per kg. Earlier, the price ranged between $16,80 and $18,00 per kg. Weak sales are driving this decline, and despite previous small price increases, the market remains sluggish. Traders report a weaker-than-normal first crop and anticipate further losses with the upcoming harvest.Domestic and International Crop Concerns
Reports from Nepal and Bhutan also indicate unfavorable weather conditions for big cardamom. In Nepal, 500 to 1,000 sacks of cardamom are arriving, but the cost of import is higher than usual at $18,60 to $19,20 per kg. As crop damage continues in Sikkim and other major producing regions, traders expect limited availability. Despite the reduced supply, there is little hope for a price rise due to weak demand.Big Cardamom Exports Rise, But Price Hike Unlikely
In the first two months of the current financial year 2024-25, India exported 302.37 tonnes of big cardamom worth $5,44 million. This marks a significant increase compared to the 184.84 tonnes exported in the same period last year, which generated $1,59 million. Despite this increase in exports, market sentiment suggests that prices will likely remain stable in the near future.Price Hike Is Not Expected
The outlook for big cardamom remains grim as floods and unfavorable weather impact the upcoming crop. With weak demand and stable prices in both domestic and international markets, traders do not anticipate a significant price rise in the coming weeks.