Big cardamom prices in Nepal are at record levels

23-Nov-2024 09:27 AM

Big cardamom prices in Nepal are at record levels
Big cardamom prices in Nepal have reached record levels, driven by a series of factors affecting production and market dynamics. Here's a breakdown of the situation:

Weather Impact: Unfavourable weather conditions in Nepal's main cardamom-producing states have severely affected production, leading to a significant drop in yield. This has been a major contributor to the price surge.

Multi-Year Low in Production: This year’s big cardamom production has hit a multi-year low, which has created a supply shortage. With limited supply and steady demand, prices have climbed to record highs.

Indian Importers Pulling Back: The high prices have made it unviable for Indian importers, who have traditionally been major buyers of Nepalese cardamom. This has added downward pressure on imports from Nepal to India.

Rising Prices in India: Despite a pullback in imports, cardamom prices are also rising in India, influenced by domestic supply constraints and increasing demand. As a result, both Nepalese and Indian markets are facing higher prices.

Future Outlook: If imports at higher prices continue in the future, the domestic market in Nepal may see further price support. This suggests that prices could keep climbing, especially if the production situation does not improve soon.

In summary, the big cardamom market is facing tight supply conditions, both in Nepal and India, leading to rising prices. If production issues persist and imports continue to be expensive, it’s likely that the price trend will continue upward.