Cardamom Prices Rise in India Amid Strong Demand and Export Enquiries

Cardamom prices in India have increased to record levels which is supported by strong domestic demand and increasing export enquiries have increased to record levels which is supported by strong domestic demand and increasing export enquiries. Average auction prices have touched around ₹3,200 per kg which is bringing a hope to farmers and traders in the spice industry.

According to reports, daily arrivals at auction platforms have reached nearly 100 tonnes, supported by an improved harvest following earlier weather-related challenges. P.C. Punnoose, General Manager of KCPMC, stated that cardamom plants recovered after rainfall resumed following a dry spell during June and July. Particularly, the initial rainfall deficit, in Idukki, affected flowering, fruit setting and vegetative growth. Subsequent showers helped enhance yields in the plantations.

How surge in Cardamom prices relates to Cardamom exports?

Despite stronger demand, cardamom exports have not recorded a significant increase in confirmed orders. The ongoing crisis in West Asia, shipping delays and rising freight costs are impacting the exports of Cardamom severely. Notably, Indian cardamom continues to attract interest in Gulf markets, due to the reports of crop failure in Guatemala. But, international buyers remain careful as they are purchasing smaller quantities at higher prices. Export growth could provide further support to prices of cardamom.

What about the weather outlook?

Farmers are concerned about next year’s crop since the possibility of El Niño Moreover, Lack of rainfall can damage cardamom plants, reduce pod formation and impact future supplies. According to Planters, October rains have been encouraging, but conditions through mid-December will be significant for determining the crop outlook.

Indian cardamom prices are expected to remain stable in the upcoming months since domestic demand remaining strong and export enquiries are increasing. Although weather conditions and exports will affect the market’s direction.