Big Cardamom Market Resilient Despite Recent Price Volatility

Despite fluctuations in auction prices, big cardamom remains positive with no long-term concerns about market stability. Auction activity has been slower than usual in India.

Lower Volume at Auctions

The volume of big cardamom arriving at auctions has been lower than expected, which initially drove prices up. However, a recent shift in demand has softened these increases, leading to a slight adjustment in wholesale prices. The Katchacut variety, for instance, has seen its price drop approximately $0,61 per kg, now trading between $21,83 to $21,95 per kg. Despite this dip, market sentiment remains optimistic, with expectations leaning towards price stabilization.

Weather Impact on Crop Yields

This season's heavy rainfall and the subsequent flooding in key growing areas such as Assam and Meghalaya have significantly impacted the first harvest of big cardamom. The secondary crop, which usually helps stabilize supply, has also suffered due to unfavorable weather conditions.

Crop losses are estimated to be between 60-70%, with unusually high temperatures exacerbating the situation. These factors are expected to continue affecting the supply levels in domestic markets.

Global Supply Also Decreasing

As of February 20, average auction prices for big cardamom have slightly decreased to between $18,90 to $22,73 per kg. Reports from neighboring regions like Nepal, Bhutan, and Sikkim indicate similar production challenges, which are likely to tighten global supply. Furthermore, high import duties have restricted the entry of Nepalese cardamom into India, impacting broader trades.

From April to November 2024, India's exports of big cardamom have been substantial, totaling 785.48 tonnes and generating revenues of $1.48 million. This marks a considerable increase from the previous year's 571.11 tonnes, which generated $23,787.

Future Prospects: Stability and Recovery on the Horizon for Big Cardamom

Despite a recent decrease in prices, the big cardamom market is unlikely to see a significant downturn. Limited domestic supply, coupled with steady export demand, suggests potential for market stabilization and possible price recovery in the upcoming months.





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