Cardamom prices likely to fall 20% this year

Cardamom prices are expected to slump at least 20% this year due to higher production and decline in demand from the exports market.

While cardamom of lower quality is sold in the range of Rs 180-190 per kg, medium quality cardamom is quoted between Rs 180-200 per kg.

Despite higher estimated production this year, bold quality cardamom of 7mm and 8mm have gone up by Rs 25 in the last fortnight to Rs 260-270 per kg and Rs 425 per kg, respectively.

The supply of low and medium quality cardamom is higher and therefore, the price of these varieties have already started dropping despite a lean period for the crop.

Today, the availability of bold quality is down from the last year's stock of 6000 tonnes. Apart from that, the acreage of bold quality this year so far is very less. Although the harvesting has just started, the size of cardamom is comparatively lower, thereby, raising demand of bold variety in the market.

India exports its good quality cardamom to Saudi Arabia, but last year, the demand from Saudi Arabia was small as imports from Guatemala had increased extensively due to its larger size and qualitative fragrance.

With favourable monsoon and good climatic conditions, cardamom traders expect a 50% surge in production this year to 17,000 tonnes as against 11,000 tonnes last year. Spice Board is also expecting a bumper crop this year with an estimated production of around 16,000 tonne in its revised estimated projection.

The demand of Indian cardamom is determined by the north Indian market due to higher consumption in the region.