A Whiff of Resilience in Big Cardamom Trade
The world of big cardamom faces turbulent times, with adverse weather conditions affecting crop yields. Despite challenges, the stalwart spice stands firm, but caution echoes as prices soar higher than the norm. This journey through the twists and turns of big cardamom evolves, revealing resilience in the middle of uncertainties.
Weather Woes and Insect Intricacies Cause Nominal Arrivals
The second crop of big cardamom growth, crucial for central-producing states, faces a setback due to unfavorable weather conditions. Nominal arrivals mirror the impact, and fears loom over the weakened state of the first and second crops. The current season witnessed higher-than-normal temperatures during the crop’s growth phase, coupled with a menacing attack by insects. The dual assault poses a threat, leading to an estimated colossal loss of up to 70 percent in the first crop of big cardamom, with the second crop expected to follow suit.
Recent Surges and Profit Booking
Despite the looming losses, recent weak buying spurred a rise in big cardamom by $0,60 or €0,55, reaching a high of $15,64/15,76 or €14,37/14,48 per kg in the local wholesale grocery market. However, profit booking selling has now pegged it at $15,04/15,16 or €13,81/13,93. A substantial surge was witnessed before this.
The last auction on January 11 reported an increased average auction price of big cardamom to $12,82/18,51 or €11,77/17,00 per kg. Like India, Nepal witnesses significant losses in the large cardamom crop, with import prices soaring. Reports of crop damage also surface in Bhutan and Sikkim, contributing to the anticipation of market pressures this month.
Export Trends and Financial Year Insights
In the first seven months of the financial year 2023-24 (April-October), India exported 458.15 tonnes of big cardamom. A comparative review with the previous year reveals a significant dip, with 912.29 tonnes exported. The market outlook suggests potential strength in the days to come.
The big cardamom trade encounters challenges due to adverse weather, impacting crop yields. Despite uncertainties, the spice remains firm, although caution arises due to soaring prices. The second crop faces setbacks with nominal arrivals, as higher temperatures and insect attacks contribute to an estimated 70 percent loss in the first crop. Recent market fluctuations, including surges and profit bookings, add complexity, reflecting resilience and caution. The auction scene reports increased prices, aligning with global losses in Nepal, Bhutan, and Sikkim. Export trends show a dip, yet the market anticipates potential strength in the upcoming days.