Big Cardamom Prices Holding Steady as Demand Picks Up

Big cardamom prices have remained stable despite weak arrivals in auctions. The domestic wholesale market is following a similar pattern, with prices holding steady within a set range. If demand continues to improve, prices may stay firm in the coming weeks.

Auction volumes have been lower than usual, leading to price fluctuations. After briefly rising, auction prices have softened slightly. However, spot market demand has improved, helping stabilize prices. Heavy rains earlier this year triggered floods in Assam, Meghalaya, and other northeastern states, impacting production. Recently, domestic sales have started to pick up again.

At the moment, big cardamom (scissor cut) is trading at USD 22,08 - 22,20 per kg, gaining USD 0,36 per kg in the past few days. Earlier, prices had dipped due to sluggish demand, but now they are holding firm due to significantly reduced supply.

Lower Production Causes Supply Shortages

This season has been tough for growers, as both the first and second crops have been much weaker than usual. Unfavorable weather caused 60-70% crop losses, with 70% yield loss in the first crop alone. The second crop is also expected to be lower than normal, raising concerns over supply shortages.

With production down, domestic availability has taken a hit. Unstable weather conditions in key growing regions continue to threaten future supply, making traders cautious about price movements.

Auction Prices Drop Slightly, But Supply Stays Tight

As of late January, the average auction price for big cardamom has dropped slightly, now ranging between USD 18,60 - 22,50 per kg. The situation is similar in Nepal, where cardamom production has also declined. Reports suggest that 500 to 1,000 bags are arriving from Nepal, but high import duties are restricting trade volumes. Meanwhile, Bhutan and Sikkim have also reported major crop losses.

Exports Rise, Keeping Prices Firm

India exported 659,68 tonnes of big cardamom in the first half of the 2024-25 financial year, generating USD 12,17 million. This marks a significant increase from the same period last year when exports stood at 458,15 tonnes, valued at USD 4,65 million.

Conclusion: Big Cardamom Prices May Stay Firm

If sales continue to grow, prices are likely to remain steady. With limited supply and strong demand, the market may stay firm in the coming months. Traders and buyers should keep an eye on auction trends and weather conditions, as both will impact prices.





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