Cardamom prices almost doubled today to touch Rs 855 a kg compared with Rs 440 a kg quoted in the same month last year.
The best quality bold cardamom fetched a maximum price of Rs 980 a kg, the highest in three years.
The domestic market is currently bullish and the average price of the season may cross Rs 750 a kg against Rs 540 a kg last season.
Due to the current demand and supply trend, the average monthly price is likely to reach Rs 1,000 a kg by January. The main reason for the sudden spurt in prices is that India became the global supply centre for the commodity since the last six-seven months. The declining production in Guatemala, the major producer, forced all leading importers to buy from India. Thus, the rising overseas demand for the spice along with a steep rise in domestic demand, especially from north Indian markets pushed the prices further.
Exports of cardamom doubled during April-October at 620 tonnes as against 310 tonnes in the same period last year. According to KM Michel, president, Cardamom Growers Association, the surge in overseas demand led to the season’s high prices. Also, heavy buying by exporters also contributed to the rise.
The total production is expected to fall 20 per cent to 10,000 tonnes compared with 13,000 tonnes last year. Also, rising input cost, especially labour, is a major hurdle for cardamom cultivation.
