Cardamom Prices Surge Amid Peak Harvest Season

Fast Summary:

• Cardamom prices in India are unusually high during teh main harvesting period in September, contradicting the usual trend of price dips due to increased inflow.
• Farmers are receiving around ₹2,500 to ₹2,600 per kilogram; auctions have seen robust sales with about one lakh kg sold out daily.
• At Spices Park, Puttady’s auction on Wednesday morning, an average price of ₹2,575/kg was noted; Idukki District Traditional Cardamom Producer Company Ltd recorded a maximum price of ₹3,015/kg.
• Export demand and reduced production in Guatemala are contributing factors behind the high prices. Vendors expect strong market conditions to persist until Deepavali.
• The United States imposes heavy import duty but is not a critically important buyer; Middle Eastern countries remain dominant importers.

Indian Opinion Analysis:

The heightened cardamom prices during peak harvest season signal positive economic outcomes for farmers and exporters. This divergence from traditional seasonal trends highlights supply-demand pressures influenced by external factors such as Guatemala’s lower production and steady export orders. Importantly,the viability of relying on Middle Eastern markets insulates India against potential trade hurdles like the U.S. import duties. Moving forward, maintaining quality standards and strengthening ties with diverse export partners will be crucial in sustaining such favorable conditions while shielded from volatility linked to global events.

Read more: The Hindu