Decline in Small Cardamom – Prices at Minimum Level

24-Apr-2025 06:53 PM

New Delhi. Prices of small cardamom have dropped to their minimum level in recent weeks, but market sources believe there is no room for further decline.

The final phase of the current season’s harvest is underway, which is expected to result in both lower arrivals and reduced quality in the coming days. Additionally, with Eid approaching in June, export demand is expected to rise, potentially pushing prices upward.

Production in India and Guatemala has fallen sharply this season. India is estimated to produce 20,000 to 22,000 tonnes of small cardamom this year, compared to 28,000 to 30,000 tonnes last year. Guatemala, the other major producer, is also reporting a drop in output — from 32,000–33,000 tonnes last year to 18,000–19,000 tonnes this season.

Despite last year’s crop losses due to adverse weather in Kerala and Tamil Nadu, this year the weather has so far been favourable, raising hopes for a better crop in the coming season, starting July-August in India.

Market sentiment is turning positive. Exporters have resumed sporadic buying, and prices showed firmness of Rs 25–30 per kg at auction centres.

In a recent auction by Green House Cardamom Marketing India Pvt. Ltd., 57,277 kg arrived and 55,526 kg were traded.

The maximum price reached was Rs 2,963, and the average was Rs 2,553 per kg. However, over the past month, small cardamom prices have declined by Rs 200–250 per kg due to weak domestic demand and increased availability.

On the export front, low Guatemalan production has fueled a 37% rise in Indian cardamom exports in April–December 2024.

According to the Spices Board, India exported 4,926 tonnes of small cardamom worth Rs 1,058.48 crore, up from 3,588 tonnes and Rs 542 crore in the same period last year — a 95% surge in export earnings.