Cardamom prices surge amid production concerns
As El Niño influences the monsoon rains in cardamom-producing regions, the prices of cardamom experienced a continued increase in July. This rise can be attributed
As El Niño influences the monsoon rains in cardamom-producing regions, the prices of cardamom experienced a continued increase in July. This rise can be attributed to a reported decline in production this year, coupled with a growing demand resulting from the easing of tensions in West Asia. Consequently, the average price has surpassed ₹3,000 per kg. According to Spices Board data, an auction by RNS Spices held at the Spices Park in Puttady on July 2 quoted this season’s highest average price of ₹3,005 per kg, with the highest price quoted at ₹3,672 per kg.
The price surge began on June 19 after geopolitical tensions in West Asia eased. A source noted, “The market is showing a positive trend, but due to the El Niño effect, the harvest season is now expected to start in late July instead of early July. This suggests the new crop won’t be available soon.” Spices Board chairperson Sangeetha Vishwanathan said that the Spices Board has not yet received any report of a production fall in cardamom-growing areas due to the El Niño effect.
Santhosh Allus, a cardamom exporter based in Kumily, Idukki, noted that prices may increase further. “Since the easing of West Asia tensions, vendors have been receiving export orders, which is driving up prices. Predictions of a production drop are driving the market surge,” he said. Cardamom Planters Federation chairman Stany Pothen observed that due to the rain deficit, cardamom capsules have not developed on the plants, and a huge production dip is expected this season.
“The price rise has not benefited farmers as they have no ready-harvested stock to sell. If the rain deficiency continues at the present level, the cardamom sector will face huge losses, and prices will reach new heights,” Mr. Pothen said.
The BriefWire