The small cardamom harvest in South India has received a bountiful boost from recent rainfall, showering farmers with substantial benefits. As a result, prices have embarked on a relentless downward spiral, indicating a bearish trend. However, there’s a glimmer of hope as the current prices may find their footing, tempting investors with a delectable opportunity.
The latest survey report reveals that the recent downpour has bestowed significant advantages upon the small cardamom crop. This year, production is projected to surge to 0.265 to 0.27 million metric tonnes, surpassing the 0.24 million metric tonnes of the previous year. The regions of Bodi, Kajaneri, Santhampara, Kumli, and other vital producing areas in Kerala, Tamil Nadu, and Karnataka have soaked in the much-needed rain, resulting in a remarkable 10 to 11 percent leap in grain yield within a fortnight.
Rumors about flood
The room for further price decline is limited for now. The recent precipitation is expected to uplift the quality of small cardamom, thriving under temperatures between 10 to 32 degrees Celsius—a perfect tropical climate. This favorable condition hints at a simultaneous rise in production and quality. The arrival of the new small cardamom variety in Delhi is anticipated by the month’s end. Beware of baseless rumors about new goods flooding the Bodi market. Moreover, prices of small cardamom in other countries, such as Guatemala, are spicier than in domestic markets, compelling manufacturers to curtail their stocks of medium-grade goods.
Despite a volatile market influenced by currency fluctuations and the ban on 2000-rupee notes, auction centers exhibit signs of stability. Some brand manufacturers diligently hold their goods at lower prices, while exporters have spiced up their buying activities in the past two days. Expect a slight price decrease with the onset of the monsoon. However, substantial fluctuations are unlikely due to limited international stock this season.