Cardamom price touches all-time low

Cardamom price often reaches its peak during the festival season after the harvesting season is over.

However, one of the lowest price was recorded this time on Saturday raising concern over further drop in price. The average price dropped to ₹1,251 at the auction held at the Spices Park at Puttady.

The market price was much below the level and local traders at Kattappana said the average price offered was ₹1,000 a kg. The severe drop in the price has created a concern as the festival season in April was considered the one with highest demand in north India. The export prospects of cardamom also increase during the Ramzan festival season. However, this time the reverse market trend happened.

Jijo Antony, a farmer, said he has not sold the produce expecting a better price in the festival season. Since the COVID-19 pandemic, the price has remained low. “Now it is falling and it is a reverse trend we never expected,” he said.

Mr. Antony said that it might be due to an impression that there was a high stock with the farmers and the favourable climate would increase the production in the coming season.

Since the pandemic started, the demand in the internal market declined and with low demand the export prospects also fell, said the manager of a company which participates in the e-auction at Puttady.

The highest ever price of cardamom was recorded on August 3, 2019 at ₹7,000 a kg at the auction held at Puttady. The price in the local market also reached ₹6,000 a kg. The high expected production of cardamom in the coming season beginning August and the large stock of unsold cardamom with the traders and farmers are the main reasons for falling price.

There may be a long-term effect on this as the pandemic had caused a decline in demand, said an agency engaged in preparing the marketing trend for cardamom.

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Printable version | May 8, 2021 3:02:44 PM |

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