Limited Supply of Cardamom Sparks Price Increases

Big cardamom prices in Indian major markets have risen due to a sharp drop in production and low stock availability. In Siliguri, cutting JJ cardamom is priced at USD 21,00 per kg, while mustache cardamom trades at USD 20,16 per kg. Prices are expected to rise to USD 26,40-30,00 per kg this season, reflecting growing supply-demand imbalances.

Production in key states of India such as Sikkim, Assam, Darjeeling, Kalimpong, Nepal, and Bhutan has plummeted. Nepal’s stock stands at just 10% of usual levels, and India’s producing areas hold only 5,000 bags, far below consumption needs. Bhutan’s cardamom is largely exported to Bangladesh, further tightening domestic supplies.

Demand from Festivals and Industries Adds Pressure

Upcoming seasonal events like Bakrid and Ramadan, coupled with colder weather, are expected to boost cardamom usage. Additionally, the pharmaceutical and spice industries maintain consistent demand, amplifying the strain on already limited stocks.

Unfavorable weather has worsened production challenges. High temperatures in producing regions have steadily reduced fruit yield on plants, causing a further decline in available stock. Compared to last year, when production was down 50%, this year’s output has dropped to just 20-25% of typical levels.

Price Trends Reflect Severe Shortages

At the start of the season, big cardamom was priced at USD 15,60 per kg. Over three months, prices surged to USD 21,00 per kg, marking an increase of USD 5,40 per kg. Limited stocks are expected to push prices beyond USD 30,00 per kg in the coming months, particularly as industrial inquiries and export demand rise.

With seven months until the next harvest, supply pressures are unlikely to ease. Stockists remain confident in maintaining higher prices, while rising demand signals further upward momentum. Without significant production recovery, prices are set to reach record levels.





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