Cardamom price may hit Rs. 1500 per kg soon and may find strong support at Rs 800.
Spicy flavour can heal disease, higher prices can heal pain of cardamom farmers
Cardamom farmers were hit hardly by lower prices last year on higher crop but this year there is a hope in the mind of farmers to get higher rates on weak domestic crop. Framers in the kerala’s idukki region reported that poor monsoon rain faded the hops of cardamom farmers crop estimates and in turn they hope for better prices in this year.
Normally harvest of small cardamom in Kerala, the principal growing region of the spice in the country, begins in July and the traders are able to meet the festival demand that start from August. The festival season that begins from September is the busiest time in the domestic market. Usually long summer without rains has delayed the harvest, which is now likely only by the end of August or in September. India’s current year output is estimated lower due to the bas weather and this will also support the prices. The market is currently running on carryover stock from the previous year. Unlike pepper, cardamom is produced by only two countries. So India face competition only from Guatemala, a leading producer and exporter in the world market. Guatemala crop size is also very critical in deciding the cardamom rates and arrivals from Guatemala will begin in December. Need to keenly watch their weather and estimated crop to get more idea about the prices.
A leading farmer from kerala’s idukki region said that this year crop is down due to bad weather and crop arrivals are delayed by two months. The quality of the crop is not good due to bad weather and so there is chance for getting higher prices for good quality products. Normally, there will be good for cardamom during festival season in October-November months. This will push the prices higher this year.
Delhi based traders said that he received cardamom from last year crop and waiting for fresh crop arrivals which is needed for festive demand in north India. Indian cardamom is high quality in world export market and good quality cardamom will fetch good demand in the world market.
Technically, the spice is likely to move near Rs 1000 and then Rs 1500 a kg in this crop year and support is seen at Rs 800 and Rs 550(last year lowest rates). Small cardamom is mainly produced in Kerala and Karnataka and the large cardamom is different variant produced in northern eastern India.