In small cardamom, the auction arena is witnessing a dramatic ascent, steering its spot market prices upward. This key grocery player is poised to stand firm, propelled by an intriguing interplay of factors.
Diligent Auction Dynamics and Market Momentum
The recent surge in auction arrivals, attributed to festive fervor and Christmas producer sales, has contributed to this intriguing climb. Despite the devastating ‘Michong’ cyclonic storm wreaking havoc in Chennai, the capital of Tamil Nadu, the small cardamom-producing states in South India are basking in favorable weather conditions, signaling a boon for this grocery gem.
Weather Whispers and Crop Cheers
As rainfall and sunshine harmonize in the small cardamom havens of South India, the ongoing crop anticipates a favorable turn. Despite past monsoon mayhem in Kerala and other central producing states, dampening hopes with floods and losses ranging from 15 to 40 percent, there’s a silver lining. Expectations are budding for significant growth in small cardamom over the next quarter, partly fueled by Guatemala’s recent price hike in its small cardamom, potentially amplifying India’s export demand.
Auction Anecdotes and Price Peaks
The small cardamom influx rose impressively in the recent CPMC auction on December 23. However, the auction price faced a minor dip, settling at an average of $19,70 or €17,88 per kg, spurred by increased arrivals and tempered purchases. Contrastingly, in the December 16 auction, the average auction price was $20,02 or €18,18 per kg. The wholesale market in the capital echoed this sentiment, witnessing a $1,51 or €1,37 surge in seven-and-a-half mm small cardamom, now standing tall at $21,39 or €19,55 per kg.
Export Elevation and Financial Flourish
Delving into Spices Board data reveals a fascinating export record. In the first half of the current financial year 2023-24, India shipped 2015.51 tonnes of small cardamom. This aromatic adventurer journeyed in higher volumes a year ago, with 4342.47 tonnes. Despite this ebb and flow, small cardamom seems poised to maintain its robust stance in the days ahead.
Recent auctions have propelled prices of small cardamom, portraying a captivating momentum. Despite the Michong storm’s aftermath in Chennai, South India’s cardamom havens bask in favorable weather, signaling a potential boon for this grocery gem. Guatemala’s price hike contributes to growing export demand. The auction arena, marked by impressive surges and nuanced price changes, adds layers to the small cardamom momentum. Spices Board data hints at export fluctuations, yet small cardamom appears poised for resilience.