Cardamom varieties witnessed a mixed price trend. While most of the month’s prices remained stable, there were a couple of dips with few significant increases.
Monthly Trend
The fifth round of picking started in Kerala, which increased the arrival of the crop. It caused the price to dip a bit in the month. However, there was an increase in the buying activity because the better quality of the new crop helped the market climb back up. The other factor that led to the rise in buying the product is the crop loss report in Kerala due to the unseasonal rain last year. But despite the news of 10 percent crop damage due to the rain, the expected output is about 27,000 metric tons this year compared to the previous year’s 23,000 MT.
There is a good hike in cardamom’s auction price despite the production increase.
The earlier price drop in the month was due to the export market being down due to the travel ban imposed by the Covid-19 Omicron variant. Also, the increase in freight prices and shortage of food containers added pressure to the cost of the spice.
The price decrease in the commodity led the Spice Board of India to take the following decisions:
- In February, only 65,000 kg of the crop was allowed to be sold in a single auction.
- In the auction, only 30 percent of the quantity can be of the traders while 70 percent will be of the farmers.
The decision was taken to benefit the farmers and reduce the selling pressure on the commodity.
Eventually, the market picked up with exporters showing interest in procuring the goods because of the superior quality of the crop in the spot markets.
The other factor that supported the price was the crop’s demand due to the wedding season.
Prediction
According to market experts, the price of cardamom is expected to go up as the temperature and the weather improve across India. It will bring in more domestic and international demand. There is the expectation that the export of green cardamom will be up by 50 percent this year. As a result, some experts believe that the price of cardamom will stay high in the coming days. However, the increase in production can cap the prices as per some other market experts. Since two opinions are going around, the more precise picture of how the cardamom market fares with its price have become a wait-and-watch game.
Price Trend
Green Cardamom 8 mm
| Data | Price |
| March 03 (Highest) | $17,65 per Kg FOB |
| February 28 (Highest) | $17,20 per kg FOB |
| February 3 (Lowest) | $17,05 per kg FOB |
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