News Capsule: Cardamom: Export Demand Slows as High Prices and Weak Monsoon Raise Production Concerns
★ India's cardamom export demand has weakened as domestic prices have climbed to ₹3,000–3,300 per kg. Overseas buyers are avoiding large inventory purchases and are instead buying in smaller lots while closely monitoring the progress of the new crop and the monsoon. Larger purchases are likely only after prices stabilise or correct.
★ Weak monsoon rains during June and July have affected cardamom-growing regions in Kerala, leading to flower drop and poor pod development. The new crop is currently estimated to suffer a 20–25% production loss, with the risk of further damage if rainfall remains below normal in August. However, good rainfall over the past two days has provided some relief.
★ India's 2026-27 cardamom production is now projected at around 30,000 tonnes, down from the earlier estimate of 40,000 tonnes and below last season's output of 37,733 tonnes. Root grub and nematode infestations are also affecting crop yields.
★ Meanwhile, Guatemala's cardamom production is expected to increase to 25,000–28,000 tonnes in the coming season from 17,000 tonnes last year. Despite the higher Guatemalan crop, the global cardamom market is still expected to remain in supply deficit.
★ Market Outlook: India's lower production and continued tight global supplies are likely to keep cardamom prices firm in the short to medium term, although the progress of the monsoon will remain the key factor determining market direction.
