From November 1, the prices of Cardamom, while remaining stable across the country, there were reports of few spot markets trading the spice at a lower rate. The continuous price drop for Cardamom is turning out to be a concern for the farmers and traders of the crop.
Cardamom has had a continuous price drop from last month onwards except for a price increase once during the first week of October.
With already second picking started for the crop, the market is flooding with the spice. Therefore, lesser demand with higher arrival is putting pressure on the price. The trend of higher arrival of Cardamom was noted in Kochi on two consecutive days, i.e., Monday and Tuesday.
While it was expected that the arrival of the Diwali festival would improve the price of Cardamom, the current pricing shows a different and bearish trend for the spice.
Quantity Of Arrival
In Kochi market, on Monday, There was an arrival of 112,113 kg of Cardamom, and on Tuesday, the recorded quantity was 81,178 kg.
The excess arrival has impacted the prices of the pods.
Green Cardamom 8 mm
|November 2||$19,60 per kg FOB|
|October 25||$20,20 per kg FOB|
Green Cardamom 7.5mm
|November 2||$16,75 per kg FOB|
|October 25||$17,36 per kg FOB|
Green Cardamom 7.2 mm
|November 2||$15,80 per kg FOB|
|October 25||$16,34 per kg FOB|
Green Cardamom 7 mm
|November 2||$15,39 per kg FOB|
|October 25||$ 15,67 per kg FOB|
Green Cardamom 6.5 mm – 6.8mm
|November 2||$14,99per kg FOB|
|October 25||$15,33 per kg FOB|
All the varieties of Green Cardamom experienced a price drop on October 26. However, they have remained the same till November 2. Since the beginning of October, there have been three price drops for the spice, i.e., October 5, 18, and 25.
Given the current trend, it remains to be seen how the market fares for Cardamom in the coming months and next market year.
With increased production of the crop, the experts of the market believe, that 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, and with favorable weather, the expected production will reach almost 30,000 MT.
Some reports suggest 10 percent of the crops got damaged in the Idukki region of Kerala due to the recent flood, but it won’t change the overall quantity of the crop for 2022. Hence the pressure on the price is expected to remain.
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