The country’s marketing season for small cardamom is nearing its end, resulting in a price improvement this week. Earlier, there was a price slump in the market, and experts believe the small cardamom prices will decrease in the coming days.
Current Scenario
There has been a sudden surge in the arrival of small cardamom in main grocery markets. It has surprised the traders and the stockists.
Sugandhagiri Spices Promotes and Traders Pvt Ltd held its auction, where the arrival of small cardamom was reported to have increased to 44,993 kg.
The average auction price in the domestic market was down to $9,98 per kg. It was comparatively down due to the increase in the arrival amidst a poor purchasing trend.
Earlier, in the auction held on May 21, where the arrival was estimated to be about 40,435 kg, the average auction price was $11,12 per kg.
The activity in the market is sluggish in the south due to the heavy rainfall. However, the monsoon has been delayed in Kerala compared to the forecast by the Meteorological Department. On the other hand, the rise in the temperature to 45 degrees Celsius in the north affects the purchasing trend in markets.
There is also a possibility of exports being affected due to the shortage of containers and skyrocketing sea freight costs.
These factors are expected to impact the small cardamom prices in the coming days negatively.
According to the data released by the Spices Board, exports of small cardamom in terms of quantity jumped 68 percent to 7337 tonnes in the first nine months of the recently ended financial year 2021-22. This resulted in an income of $129,6 million. As a result, the earnings are 39 percent higher as compared to the reporting period of the previous financial year.
Price Trend
In the capital of India, the small cardamom prices for the 7.5 mm decreased by $0,97 per kg to reach $11,28/ $13,22 per kg.
This week prices of Green cardamom 8 mm ranged around $17,79 per kg FOB.