In large cardamom, a familiar tale unfolds as hopes of a market boom dwindle again. The average auction price, a key indicator, has taken a contemporary twist, casting a shadow of uncertainty over the coming days.
Despite a recent price surge, sales of large cardamom have faltered, defying expectations. The steep price increase alone fails to reignite consumer interest. From the beginning of the current season until now, the arrival of large cardamom has been anything but ordinary. Farmers, dissatisfied with spot prices lower than anticipated, cautiously release their harvest in limited quantities. This cautious approach led to a recent spike and a subsequent slump due to profit booking.
However, the latest auction held on May 11 witnessed a decline, with the average auction price dwindling. In Assam, murmurs circulate regarding substantial damage to the second crop, suggesting that only half of the expected yield will materialize. The repercussions reverberate through the diminished supply of large cardamom from Assam, impacting auctions and trade. Reports of crop damage also emerge from Bhutan and Sikkim, exacerbating the challenges faced by the market.
The first crop encountered a sluggish start, experiencing a slowdown in spot markets and the average auction price. Adverse weather conditions during crucial growth stages in the previous season resulted in a weaker first harvest of large cardamom than usual. Notably, the second crop, the main harvest, suffered a 35-40% decrease compared to average yields. This disruption in production led to irregular auctions in the last season. Meanwhile, imports of large cardamom from Nepal have surged, currently at approximately USD 8,22 per kg. Thus, the possibility of a rise in large cardamom in the spot has started getting dim in the coming days.