Big Cardamom’s Economic Landscape
The big cardamom market often experiences a pattern where an increase in prices leads to reduced sales. This recent downturn has made the import of this crucial kitchen spice less economically feasible. As a result, we anticipate continued irregular growth in the sector.
Market Information for Consumers
After a period of increased demand, the domestic interest in big cardamom has seen a downturn, leading to a decrease in price by approximately $0,60-$0,72 per kilogram. Presently, in the wholesale market, Jhundiwali and Scissor Cut varieties are priced at $15,84 and $16,20 per kilogram, respectively. On the other hand, the cost of importing big cardamom stands at around $16,32 – $16,44 per kilogram.
Challenges in Crop Production Affecting Prices
The expected poor harvest is mainly due to unfavorable weather conditions. The season has seen higher than usual temperatures in major producing areas, combined with pest infestations, leading to an anticipated severe reduction, potentially up to 70%, in the initial harvest. These factors contribute to the poor outlook for the subsequent harvest as well.
At the latest trading event, which occurred on March 14, the average selling price for big cardamom was noted to be between $14,40 and $17,12 per kilogram. This issue extends beyond Indian borders, with neighboring Nepal also reporting considerable crop losses and maintaining similar import price levels.
Export Data and Market Impact
This issue affects not just local but also international markets, including areas like Bhutan and Sikkim, indicating an upcoming strain on supply. During the first nine months of the financial year 2023-24, India exported 788.54 tonnes of big cardamom, bringing in $946,560, a drop from the previous year’s figures of 1302.44 tonnes and $1,181,520 in revenue.
Big Cardamom Crop Decline
The big cardamom sector is facing significant challenges this season, including adverse climatic conditions and infestations, which have led to a considerable drop in crop yields and inconsistent market behavior. Consumers and traders alike are encouraged to stay informed on the latest developments in the big cardamom market to better manage their purchases and stocks.