Domestic Prices Hold Steady as Production Struggles

In the first four months of the current fiscal year, India saw a remarkable 150% increase in the export earnings of big cardamom, according to the latest data from the Spices Board of India. However, domestic prices remain elevated due to a third consecutive year of below-normal production. In the local wholesale markets, big cardamom scissor cut remained steady at USD 17,76 to 17,81 per kg, having recently dropped by USD 0,24 due to sluggish demand from stockists.

Weather Continues to Impact Production

Market sentiment continues to be strong, despite fluctuations in prices. According to Dayanand Jain, a prominent trader, India’s big cardamom production has been 45-50% lower than average for the past three years due to adverse weather conditions. The same pattern is expected this year, with production failing to meet usual levels.

The declining trend is not limited to India. Neighboring countries, Nepal and Bhutan, are also struggling with big cardamom production. Nepal, the world’s second-largest producer of big cardamom, has seen prices rise as high as USD 18 to 19,20 per kg. The climatic conditions in these countries mirror those in India, exacerbating the production shortfall across the region.

Harvest Season Updates and Auction Trends

India is nearing the end of its first big cardamom crop for the year, with the second and larger crop expected in October. Like last year, this main crop is likely to underperform. In the most recent auction held on October 3rd, big cardamom fetched prices ranging from USD 14,40 to 20,40 per kg, reflecting the market's anticipation of continued supply challenges.

Export Data Highlights Strong Growth

Between April and July 2024, India exported 382.56 tonnes of big cardamom, generating USD 7,26 million in revenue. In comparison, the same period last year saw exports of 353.37 tonnes, which brought in USD 2,91 million. This year’s 8% increase in export volume, combined with higher global prices, has resulted in a 149% surge in export revenue, positioning India as a key player in the global cardamom market.

Conclusion: What’s Next for Big Cardamom Prices?

Given the ongoing supply constraints in both India and neighboring countries, the domestic price of big cardamom is likely to rise further in the coming months. For traders and exporters, it might be wise to hold off on selling until after the second crop, as prices could stabilize at a higher level.





Click here to reach our trading platfrom CMBroker