India’s Big Cardamom Prices Expected To Become Stable Due To Lower Arrivals

India’s big cardamom prices at auctions have recently declined despite reduced supplies arriving at markets. Wholesale markets across India are experiencing a similar trend. However, market experts anticipate that this downward trend could soon stabilize or reverse due to ongoing supply constraints.

Currently, big cardamom prices in local wholesale grocery markets, particularly Kainchi Cut, have dropped by USD 18,72–18,84 per kg. This represents a recent decrease of about USD 1,20 per kg. Previously, the market had already seen a decline of approximately USD 1,44–1,56 per kg.

Weather-Induced Crop Shortfall

Weather disruptions have significantly impacted big cardamom production this season. Heavy rains and flooding affected major production areas such as Assam and Meghalaya, severely impacting crop yield. Additionally, unusually high temperatures during critical growth periods have further compounded the problem, causing losses estimated between 60% and 70% for the first crop and expected weaknesses in the second crop.

Cardamom Auction Prices Reflect Market Dynamics

In recent auctions held up to March 13, big cardamom’s average auction price settled at around USD 16,80–20,56 per kg. The Nepalese market has also faced similar crop losses, with reduced arrivals ranging between 500 and 1,000 sacks. Limited imports due to high import costs have added upward pressure on prices.

Export Performance

During the first seven months of the 2024–25 financial year, India exported 785,48 tonnes of big cardamom, earning approximately USD 14,59 million. This compares favorably to exports of 571,11 tonnes and earnings of USD 6,23 million during the same period in the previous financial year, reflecting strong international demand despite domestic supply constraints.

Short-Term Market Performance in Market

Considering the continued shortfall in supply and steady export demand, industry sources expect the current downward price trend to halt or reverse shortly. Farmers and traders anticipate more stable pricing dynamics as market conditions adjust to ongoing production challenges and global demand patterns.