Cardamom prices shot up this week on reports of low production and stock in the market. The average price of the commodity rose to Rs 1,336 a kg, up Rs 200 from last week. The best quality cardamom is currently quoted at Rs 1,475-1,500 a kg.
Growers and traders believe the prices would cross Rs 2,000 a kg next year. The maximum price so far recorded was Rs 1,750 last year.
As the production was in full swing, average price of the spice dropped to Rs 850-900 last month, but picked up swiftly by the middle of this month since arrival to auction centres slowed down.
As the main harvesting season is ending now, the flow of fresh cardamom has been curtailed for the last couple of weeks, hence the abrupt increase in prices.
Markets sources estimate a 25-30 per cent decline in output this season due to various reasons. The demand from overseas market is expected to rise next year as Guatemala, the world’s largest producer, is facing problems due to unfavourable climate. Growers foresee a rise in demand for Indian cardamom, locally and globally in the new year and this would obviously affect the price line.
The on-going harvesting will come to a halt by the end of this month and the market has to run on the available stock for the next seven-eight months. Anticipating better earnings in the new year, large plantation owners are stocking cardamom for the new year. This has affected the supply at present.
Production had been low due to untimely rain in Idukki district, which accounts for 55 per cent of the total production. Rain caused fungal infection in the plants in various estates that caused further damage. The average annual output of cardamom is 13,000 tonnes and this time the total production might be around 10,000 tonnes according to the latest estimates by growers.
