The market for big cardamom may witness a further price increase, attributed to a consistent upward trend driven by reduced domestic production. Reports indicate a significant 40% decrease in production in both Nepal and Bhutan, exacerbating price escalations in these regions.
The cost of acquisition has notably risen, with current trends suggesting a move towards a price point of $2,4 or €2,23. Production forecasts from West Bengal, including key areas such as Gangtok, Sikkim, and Siliguri, predict a drastic 50% reduction in big cardamom yields.
Previously, Bhutan exported large quantities of lower quality cardamom at competitive prices. However, this season has seen a marked decrease in such exports, with Bhutan redirecting its supplies to alternative international markets. Consequently, Assam traders have begun withholding these imports at Indian ports.
Market dynamics in Nepal have also shifted within two days, leading to a corresponding price increase in Delhi’s market.
Big Cardamom prices increased
Prices in |
Previous price |
Current Price |
| Nepal Market | $936 (€869) | $960 (€891) |
| Delhi Market | $15,84-$15,96 (€14,71-€14,82) | $16,2 (€15,04) |
Market analysts predict a further rise, with prices potentially reaching $1020 in the upcoming week and forecasting an April peak of $1080 in Nepal. This anticipation is grounded in the expected substantial losses to the big cardamom crop in Nepal, compounded by the depletion of existing stockpiles.
The international demand for Nepalese cardamom, coupled with high market prices, has led to a steady export of the spice. Within Indian markets, however, stockpiles are limited, with the new harvest barely sufficing to meet demand. Currently, the price of big cardamom in Delhi, sourced from the Siliguri Gangtok line, stands at approximately $15,36-$15,42 (€14,26-€14,32), with projections indicating an increase to $16,2 (€15,04)in the near term, potentially reaching $18 (€16,71)by March 31.
Reflecting on the previous year, the demand for big cardamom experienced a significant downturn during October and November, with prices plummeting to $11,64-$12,12 (€10,81-€11,25)per kg. This decline led to an 86% reduction in external trade volumes. Presently, states such as Uttar Pradesh, Madhya Pradesh, Haryana, and Delhi hold merely 67% of last year’s stock.
The diminished production of cardamom seeds, approximately 11-12% less than usual, has hindered purchases by seed companies. This shortfall is expected to incrementally boost the consumption of big cardamom, with many commercial transactions currently pending. Given these circumstances, the prevailing prices of big cardamom are poised to offer substantial benefits, underscoring the critical nature of market trends and production dynamics.
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