Fear of damage to the crop and shortage of stock led to a bullish trend in cardamom.

06-Jun-2024 05:34 PM

Kochi. Lack of pre-monsoon rains and high temperatures during March to May in both the top producing states - Kerala and Tamil Nadu - hindered the development of the small cardamom crop because the water level in dams and reservoirs fell significantly and due to this sufficient water was not available for irrigation of the cardamom crop in the gardens.

Although the rainy season started in both these states from the second fortnight of May, which brought relief to the crop in some areas, but the crop which had suffered heavy damage earlier could not be compensated properly.

The arrival of new cardamom is expected to start at the end of the current month (June) or early July, while officially its new marketing season starts in August.

Due to the off season of supply, the arrival of small (green) cardamom in the auction centers is decreasing. Despite the high price, the low supply in the auction clearly indicates that the producers have limited stock of cardamom left.

In the last auction held, about 43 tons of cardamom arrived and its average price improved to around 2356 rupees per kg which was higher than the average price of 2307 rupees per kg in the auction held on 27th May.

Due to the weather not being completely favorable for the crop in the major producing states, the production of small cardamom is likely to be affected.

The crop in Guatemala is also said to be weak, which may support Indian cardamom. It is worth mentioning that Guatemala, located in the continent of North America, is considered to be the biggest producer and exporter of small cardamom in the world. But the quality of its cardamom is weak.