Indian Cardamom Prices Fall - Farmers Await Rain Relief

Indian cardamom prices saw a noticeable drop of USD 3,12 to 3,75 per kg over the past week, mainly due to slow domestic demand, reduced exports, and quieter trading activity at the financial year-end. Currently, the average cardamom price stands around USD 32,50 per kg.

Fewer cardamom supplies reached auction markets lately, primarily because drought conditions severely impacted this year's crop. Traders have pointed out that arrivals dropped about 25%, and overall production is nearly 60% lower than the previous season.

Farmers Hopeful as Early Summer Rains Begin

Despite current shortages, farmers are encouraged by recent rains across cardamom-growing regions. Continued rains in April could significantly boost yields for the new harvest expected in June 2025.

Though supplies are tight, carry-over stocks from last year helped ease the immediate shortage somewhat. Additionally, more land dedicated to cardamom cultivation slightly balanced out the supply issues. However, persistently high prices have depleted stocks considerably at both the farms and markets.

Exports Slow Down, but Stable Prices Expected Soon

Export activity remains slow since importing countries still have sufficient stocks. Production in Guatemala, a major competitor, isn't expected to improve for the next two years, possibly keeping international cardamom prices firm. Market prices are anticipated to stay stable until July or August, coinciding with new crop arrivals.

With forecasts predicting further rains by late March, the cardamom sector is closely following weather conditions, which will strongly influence future market developments.