Will the prices of cardamom improve in India? Guatemala's low production might boost Indian Export

Current Scenario:

Recently, there has been a slowdown in small cardamom, but now the fear of recession is slowly disappearing. The main reason for this is that its arrivals have started decreasing in auctions intermittently. 

Arrivals

However, the arrival of small cardamom declined to 57,49 MT in the Idukki District. On January 8, Traditional Cardamom Producer Company Limited held an auction in which the average auction price fell due to comparatively low arrivals and weak buying. Currently, It’s cold winter in North India. After the passing of Makar Sankranti, the winter generally starts decreasing. However, this time there are no signs of it happening so far. 

 Exporters’ activity is expected to remain strong due to weak production in Guatemala. However, exports are expected to be affected due to the lack of containers and higher sea freight costs. 

 Prediction

A gradual decrease in winter is also expected. Therefore, there may be a break in the bearishness of small cardamom in the coming days. Two of the four metropolitan cities of the country have seen a trend of reduction recently after the new cases of Covid-19 infection reached their peak. It indicates that the corona-virus epidemic is expected to move towards rural areas after metros and big cities. Due to this, many other states, including Delhi, have taken strict steps like night and weekend curfew. 

 Bottomline

From December last week onward, the price level continuously fell, and farmers demanded immediate attention from the government and the Spices Board. Gautemala’s low production might help Indian cardamom in Exports. Demand from India can increase in near future. 

 Prices 

• Green Cardamom 8 mm stands at $17,08 per KG 
• Green Cardamom 7.5 mm stands at $16,03 per KG 

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