The cardamom market is on a spirited upswing, stirred by soaring prices on the international stage and a dip in domestic production. This bullish wave, propelled by robust signals from overseas, projects a potential surge from $1,20 to $1,50 (€1,09 to €1,37) per kg shortly.
Small Cardamom’s Shuffle – Prices Jig, Supply Takes a Dip
Small cardamom supply has dipped by approximately 13-14% across auction centers, including Santhampara, Kumli, and Badamendu. Lower prices have sparked a notable increase. Both domestic and export demands are finding their footing in these reduced prices, hinting at upward mobility.
Simultaneously, Nepal is witnessing a similar story in the big cardamom sector, where intensified selling battles are weakening prices. Producers are hesitating to part with their goods at current rates. The currency fluctuations in Nepal, have triggered a resurgence in demand, propelling prices from $14,70 to $15,06 or (€13,41 – €13,74) per kg. Bhutan echoes a tale of scarcity, with goods virtually sold out and unavailable at any price. Meanwhile, the price from Gangtok to Siliguri hovers at $15,32 (€13,98) per kg, leading big companies in the extraction and packaging business to witness a renewed surge in demand.
Global Factors and Scissor-Cut Prices
The global stage comes into play, with Guatemala’s competitively priced small cardamom creating a vacuum in the local market. This scarcity has driven medium-grade prices up. As the global cardamom market embraces these shifts, the outlook is bullish, suggesting a potential rise.
Among these factors, the spice-laden fluctuations, one cannot help but recognize the fragrant factors of economic forces. In its intricate moves, the global cardamom market mirrors a tale of supply, demand, and currency nuances.
The global cardamom market is witnessing an upward trend driven by increased international prices and decreased domestic production. Small cardamom supply has decreased by 13-14%. Meanwhile, big cardamom sales in Nepal have intensified due to lower prices, with producers withdrawing from selling at current rates. Currency fluctuations in Nepal and scarcity in Bhutan contribute to the rise, and the market may witness a bullish trend. Big companies’ demand for extraction and packaging is rising, indicating further market growth.