Cardamom Prices Fell Across India In December 2021

Mintec Global
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The overall trend for Cardamom had been stable throughout December. There was some slight fall in the prices at times. Prices of the spice decreased during the first week, after which it remained stable for a couple of days. Again there was a drop in all varieties, after which the market was steady until last week and on December 29.

If the overall trajectory of the price decrease is viewed, the fall has been quite a significant one this month.

Market Sentiment

  • The demand has been weak for Cardamom this week, which resulted in the price drop.
  • During the first week of December, the fourth round of picking the pods has started.
  • The increase in crop production from 23,000 MT last year to 27,000 MT this year is causing the prices to get capped.
  • There was previously news of crop damage in Idukki, Kerala, due to heavy rain causing floods.
  • The damage was estimated to be about 10 percent.
  • Currently, the weather is better; the standing crops are in a good stage in Kerala and Tamil Nadu.
  • Due to the decreased price of the spice, the Cardamom planters and stockists are not interested in trading their products.
  • Last two years, Cardamom has fetched reasonable prices for the planters and traders, so they are willing to wait until the price becomes appreciative.
  • From August 1 till December 27, the crop arrival is down to 6,725 tons, compared to 7,799 tons as of last year. However, the overall production is more.

Prediction 

With the easing of travel bans, one can hope the export demand will pick up, which might help increase the cardamom prices for the future despite the increase in crop production. But with the rise in the Omicron variant, the international market is becoming a concern for cardamom exporters. Hence how the market will be shaping for the year 2022 for Cardamom is still to be seen.

 Price Trend

Green Cardamom 8 mm

DataPrice
December 29$17,07 per kg FOB
December 23$17,10 per kg FOB
December 14$17,15 per kg FOB
December 8$17,20 per kg FOB
December 7$17,25 per kg FOB

 It can be observed the price has significantly decreased for the commodity from December 7 to 29. The trend has been the same for all the other green cardamom varieties.

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