The first harvest of big cardamom is currently underway in its central producing states, with the second harvest right around the corner. However, the promising prospects of this aromatic spice may be dulled due to adverse weather conditions and potential production losses. As a result, the big cardamom market is facing uncertainties regarding support and sales.
Currently, the first crop of big cardamom is being harvested in the country’s central producing states. However, this season, the price has started relatively high, opening at approximately $11,57 to $11,69 per kilogram. For comparison, a year ago, the price for the first crop was around $6,63. Typically, this harvest occurs at the end of August or in the first half of September.
Weather and insect infestations
The second major crop of big cardamom is also about to start, expected in about a month. This year, higher-than-average temperatures in central producing states, coupled with insect infestations, have impacted the crop. Additionally, these states have received only 55-60% of the average monsoon rainfall. The cumulative effect of these factors indicates a potential loss of up to 70% in the first crop of big cardamom. Heavy rain in the past has caused flooding in some areas, further affecting the yield. The second crop is also expected to be weaker. Consequently, increased stockist purchases have caused the local wholesale market price of big cardamom (Jhundiwali) to drop by $0,12 and currently stands at $12,29 to $12,41 per kilogram.
Due to relatively low arrivals, the average auction price of big cardamom has strengthened in recent auctions. In the most recent auction on October 15, the average auction price of big cardamom slightly increased from $9,94 to $13,31 per kilogram.
Reports indicate that the unloading of the new crop has been less than half. In the previous season, approximately half of the big cardamom crop in Assam was harvested. Crop damage has also been reported in Bhutan and Sikkim, exacerbating the issue. As a result, pressure on domestic markets is expected to intensify only after the second harvest around the upcoming Diwali festival.
In the last season, after the first crop, the second crop of big cardamom was also around 35-40% less than expected. Consequently, regular auctions of big cardamom were disrupted last season.
In the coming days, the future of big cardamom in the spot market will likely depend on its sales, leading to both anticipation and uncertainty.