Why The Market Will Be Stagnant For The Indian Cardamom? Compared to last year's 23,000 MT this year, the production is estimated to be around 27,000 MT

This month has been bullish for the cardamom. It is likely to remain the same in the coming days.

Current Scenario 

• Apart from Jammu & Kashmir and Himachal Pradesh, the rest of the country is experiencing warmer weather.
• The decrease in the Corona-virus cases has improved commodity activity in local markets and among the grocers in cities like Delhi.
• A recent auction held by Greenhouse Cardamom Marketing Private Limited recorded the arrival of 66,179 kg of green cardamom.
• There were improved arrivals of the commodity, and the demand was also high. 
• Last March, the arrival was 64,999 kg, and the price was around $11,31 per kg.
• The production in Guatemala is less this year, and the good local and international demand of the Indian spice at a moderate rate will keep the market price firm.
• There are concerns about increasing freight prices and the shortage of containers, putting the market under pressure.
• Already, crude oil prices have increased due to the war, impacting cardamom export.
• Earlier, the increase in the freight price resulted in the 7 mm green cardamom price dropping by $0,65 per kg and reaching $15,01 to $15,66 per kg. It was because the export demand decreased due to the freight price hike.
• With the new crops coming into the market and the fifth round of picking already underway, the price for cardamom is unlikely to move up in the coming days.
• In the long run, the local and export demand will determine the market fares for the commodity.
• According to some experts, the increase in production this year can cap the price for the commodity.
• Compared to last year’s 23,000 MT, the production is estimated to be around 27,000 MT this year.
• There are reports of 10 percent crop damage in Kerala due to heavy rainfall earlier. Once again, it has been raining in the region. If the rain continues for the next 15 to 20 days, it will impact the crops.

According to the traders, the market will be stagnant for the cardamom because the commodity price is already high in the spot markets.

Price Trend

Green Cardamom 8 mm

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