A fascinating narrative evolves in the aromatic world of cardamom as the big cardamom market echoes the reminiscent beats of 2014 while the small cardamom market experiences a nuance of demand and supply. The current scenario offers both challenges and prospects for exporters eyeing the spice markets, making it a captivating journey to decipher.
Big Cardamom – A Flashback to 2014
The big cardamom market echoes the trends of 2014, experiencing daily surges in prices reminiscent of historical highs. Despite the current quotes, traders foresee a replay of the past when prices reached remarkable peaks. A substantial reduction in production in both India and Nepal signals potential turbulence in the market. The Spices Board’s projections indicate a notable decline, estimating the current season’s production to hover between 3500 and 4000 tonnes, a departure from the previous year’s figures. This shift underscores a compelling narrative of market fluctuations as exporters brace for the challenges and opportunities of this aromatic trade.
Export Trends and Price Surge
The scarcity of goods at the spot has triggered a price spike, causing a decline of approximately 50 percent in significant cardamom exports in the first seven months of the current financial year. The export data reveals a drop from 912.29 tonnes in April-October 2022 to 458.15 tonnes in the same period in 2023.
A softening trend emerges despite declining arrivals of small (green) cardamom. Traders, stockists, and exporters exhibit subdued interest, with harvesting and preparation of new goods still underway. While the current prices reflect a softer stance, the Gulf countries’ robust Ramzan demand may spur upward momentum.
Global Impact and Export Opportunities
Guatemala’s strategic move to reduce the export offer price in December 2023 has reverberated in the Indian market. However, the superior quality of Indian cardamom has maintained a slightly higher price. A recent auction recorded over 60 tonnes of cardamom at an average price of $19,40 or €17,91 per kg. The current favorable weather bodes well for the crop, providing potential export opportunities, especially with Guatemala’s increased export offer price.
The big cardamom market braces for a replay of historical peaks driven by production woes, while the small cardamom market softens due to global movements. Thus, the future of cardamom is bright in the upcoming days.