After the market opened on November 8, the price for the crop remained steady after the price decreased on November 3, beginning of the month. But the ongoing sentiment was not long-lived since November 10 was the second day that the price for the Cardamom has slipped. Though few spot markets in Kochi experienced an edge up in the price at the auction, the overall trend was bearish.
In October, there was a continuous price drop for Cardamom due to the weak demand in the market. The factor that led to the decline in the price is the increase of the crop arrival in the market amidst lesser local and export demand.
COVID-19 travel restrictions in South Asian countries, along with an increase in freight prices and shortage of containers, have contributed to lesser demands in the export market, 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 continues, which has become a concern for the farmers and traders.
Green Cardamom 8 mm
|November 10||$17,21per kg FOB|
|November 3||$19,50per kg FOB|
Green Cardamom 7.5mm
|November 10||$16,21 per kg FOB|
|November 3||$16,65 per kg FOB|
Green Cardamom 7.2 mm
|November 10||$14,65 per kg FOB|
|November 3||$15,70 per kg FOB|
Green Cardamom 7 mm
|November 10||$15,39 per kg FOB|
|November 3||$ 15,29 per kg FOB|
Green Cardamom 6.5 mm – 6.8mm
|November 10||$13,20 per kg FOB|
|November 3||$14,89 per kg FOB|
On average, the price for excellent variety increased by $0.01 per kg, according to reports from the Kochi market on November 10. However, the overall trend for the spice has been on a downward trend since last month. October experienced a price increase for the crop only during the first week of the month. Since then, the sentiment has been bearish to steady until the price drop started on November 3.
With increased production of the crop, the experts of the market believe 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 output will reach almost 30,000 MT.
Due to the recent flood, nearly 10 percent of the crops got damaged in the Idukki region of Kerala, but 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.
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