Cardamom prices fell again in February after they held steady for a week. The last price increase for the crop was recorded on January 20.
Current Scenario
The price of cardamom has been in a steady decline for the last few months, with sporadic but insignificant increases.
The increase in production is believed to have capped the price for cardamom in the spot markets.
The other factor that led to the price drop is the weak demand in the domestic and international market for the commodity.
The export market is down due to the travel ban imposed due to the Covid-19 Omicron variant. Also, the increase in freight prices and shortage of food containers adds pressure to the spice cost.
The price decrease in the commodity has led the Spice Board of India to take the following decisions:
- In February, only 65,000 kg of the crop can be sold in a single auction.
- Only 30 percent of the quantity can be of the traders in the auction, while 70 percent will be of the farmers.
The decision has been taken to benefit the farmers and reduce the commodity’s selling pressure.
Prediction
As per experts, the Spice Board of India’s steps will help bring the market up for cardamoms in the coming months.
It is also believed that the market for cardamom will be bullish from March onwards. The reason is the arrivals will eventually slow down in the spot markets.
The other factor that can lead to the increase in the price of cardamom is the boost in the export of Indian cardamom as the production in Guatemala has decreased.
Price
Green Cardamom 8 mm
| Data | Price |
| February 3 | $17,05 per kg FOB |
| January 20 | $17,08 per kg FOB |
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