Cardamom prices show a declining trend despite fears of crop loss

Cardamom prices decline as farmers face 50% crop loss from drought, impacting market and future yields.

Amidst fears of a 50% crop loss this season due to the severe drought that devastated cardamom farms in Idukki, cardamom prices are showing a declining trend.

Farmers were anticipating record prices this season due to the production loss. However, while the average price was ₹2,600 a kg in June, it dipped to ₹2,100 a kg by the third week of August. The farmers fear a further price drop when the delayed harvesting season begins by September.

During an auction held on Wednesday by the Idukki District Traditional Cardamom Producer Company Limited, the average price quoted was ₹2,102 a kg, with a maximum price of ₹2,578 a kg. A total of 52,343 kg was brought for auction, out of which 51,518 kg was sold.

The highest average price quoted this season was ₹2,568 on June 8 at an auction by Mas Enterprises Limited.

Jose Mathew, cardamom farmer from Kattappana, said that after the drought, he had expected record prices this year. “Until June, cardamom prices showed a positive trend, with an average of ₹2,600 a kg, and it was hoped that prices would touch ₹3,500 a kg. But within days, prices began to fall. Now, I’m unable to sell my stored product,” said the farmer.

The Agriculture department has estimated a significantly low yield this year. A report submitted to the State government by the district Agriculture department pointed out that total crop loss occurred on 16,620 hectares. “The Agriculture department had advised farmers to hold their cardamom stocks to get better prices. But now, the price decline is having a negative impact on the farmers,” said an official.

Shine Varghese, general secretary of the Vandanmedu Cardamom Growers Association, said: “Currently, only low-quality cardamom is available in the market. We expect prices to increase from October.”