Earlier this week, i.e., Tuesday, November 23, the cardamom prices dropped for all its varieties. But for the traders and farmers, the good news is the price is now stable after it experienced a decline.
Currently, the demand for spice is good in the market and is having a mixed sentiment. However, with the news of 10 percent crop loss in Kerala’s Cardamom growing regions like Idukki, the market can become appreciative again.
Already the third round of picking for the pods has started on the first week of November.
Also, the overall export demand is still less for the spice.
COVID-19 travel restrictions in South Asian countries, along with an increase in freight prices and the shortage of containers, have contributed to less to nill requirement of export demand for Cardamom, resulting in the capping of the prices.
It was expected that post-Diwali, the demand would increase, and the prices will show a positive attribute, but the downward trend for the spice continued until the mid of November. After which, the price picked up and remained stable until 23.
Green Cardamom 8 mm
|November 24||$17,25 per kg FOB|
|November 22||$17,32 per kg FOB|
Green Cardamom 7.5mm
|November 24||$16,25 per kg FOB|
|November 22||$16,32 per kg FOB|
Green Cardamom 7.2 mm
|November 24||$14,66 per kg FOB|
|November 22||$14,73 per kg FOB|
Green Cardamom 7 mm
|November 24||$13,93 per kg FOB|
|November 22||$ 14,00 per kg FOB|
Green Cardamom 6.5 mm – 6.8mm
|November 24||$13,23 per kg FOB|
|November 22||$13,30 per kg FOB|
Throughout the month, the prices for the spice remained between weak and steady, with the only exception on November 16. On that day, there was a significant increase in the price for all varieties of Cardamom. However, it was short-lived, and with an increase in crop production, the prices may further go bearish.
With increased production of the crop, the experts of the market opine it will put a cap on the pricing of Cardamom for the following market year. While earlier, it was predicted for the years 2021 and 2022, the production would be between 22,000 and 23,000 MT, but with favorable weather, the expected production will reach almost 30,000 MT.
While there are reports of crops getting damaged in Kerala due to the recent flood, according to experts, it won’t change the overall quantity of the crop for 2022. Hence the pressure on the price is expected to remain.
Also, with the easing of travel bans, one can hope the export demand will pick up, which might help increase the cardamom prices for the future despite the increase in crop production.
It remains to be seen how much the crop yield is after the picking completes for the market year 2021-2022.
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