Guatemala’s arrival of a bumper cardamom crop, its natural green colour and boldness of size is becoming the priority of Gulf countries. One more important reason that Middle East clients choose to import from Guatemala is that its price is lower than Indian cardamom. However, Indian Cardamom has yet its place in the market due to its aroma and quality. At present, Indian cardamom by grade is sold in the international market for $10 to 18 per kg, while Guatemalan is available for between $5 to 10 per kg.
According to exporters from India, Indian cardamom got good prices till August. After this, due to heavy arrivals from Guatemala at low prices, it is facing less inquiry in the international market. Earlier Indian exporters faced problems such as increased sea freights, which are now getting down finally. As of now Guatemalan’s increased yield and low prices remain a threat to Indian cardamom.
According to sources, Indian cardamom, due to its inherent quality, natural colour and taste quality, continues to hold on to its priority of being selected into major importing countries despite higher prices than Guatemala.
During the financial year 2021/22 approximately 10,572 tonnes of cardamom worth $16,70 billion was exported, while in the financial year 2020/21 only 6486 tonnes of cardamom could be exported.
In the first five months of the financial year 2022/23, i.e. between April and August, the export of small cardamom from the country in terms of volume increased by 15 per cent to 3794 tonnes, while the income from export declined by 11 per cent to $5,79 billion. At the same time last year, 3302 tonnes worth $ 5,93 billion were exported from the country.
At present, the hope of a positive trend has been reduced among traders due to increasing arrivals in the markets of South India and the auction price is in the range of $11,24/11,54 per kg. Mr P C Punnooz (Auctioneer, and CEO of CPMC Ltd) says that the market trend is based on speculation. The price increase can be expected only when carrying forward stock at consumer centres is over. In the previous 6 months from April to September 2022, 15,500 tonnes of cardamom were auctioned. Due to this the carry forward stock at the consumer centres is enough and is mainly causing pressure on the prices.
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