Auction Volumes Reflect Sluggish Demand of Small Cardamom

The small cardamom market is navigating a challenging phase, with auction arrivals dropping significantly. Recent reports show the volume slipping to 8,113 kg from 10,978 kg in a few days. Alongside this decline, average prices have also eased, moving from USD 35,10 per kg to USD 34,40 per kg. The reduced supply has yet to create upward pressure on prices, leaving farmers and traders grappling with tough choices.

Rains Disrupt Harvesting Cycles

Continuous monsoon rains have disrupted farming activities in Kerala, Karnataka, and Tamil Nadu. Fields remain waterlogged, delaying harvests and raising concerns about the quality of the yield. Farmers are struggling to manage these adverse conditions, which are adding to the uncertainty in the market.

Export Markets Offer a Ray of Hope

International markets are showing promise for Indian cardamom. Rising prices in Guatemala, a competing producer, have opened the door for increased demand for Indian exports. This shift is encouraging exporters to look outward, potentially offsetting weaker domestic demand. Many are keeping an eye on global trends to capture these emerging opportunities.

Local Markets See Gradual Price Recovery

Amidst broader challenges, some local markets are seeing slight gains in pricing. Premium cardamom (7.5 mm) now sells between  USD 36,30 and 36,90 per kg. Though the uptick is small, it offers a hint of resilience in certain segments, providing traders with some encouragement.

Strong Export Figures Provide Support

Exports remain a bright spot, helping to buoy the industry during tough times. Between April and August 2024, India shipped 2,759.12 tonnes of cardamom worth USD 61,90 million, compared to 2,015.51 tonnes worth USD 33,05 million during the same period last year. This growth underlines the steady international demand, even as domestic challenges persist.

Balancing Risks and Opportunities

The small cardamom market is under pressure, with weather disruptions and slowing domestic demand creating challenges. However, the strength in exports and gradual local price improvements point to potential opportunities. Farmers and traders need to stay flexible, closely watching both domestic and international developments to make informed decisions as the market evolves.





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