Thodupuzha: After a gap of two-and-a-half years, the price of cardamom has soared to a new high to cross the Rs 2,000 per kilogram mark.
The e-auction of the Spices Board of India yesterday (Aug 8) saw the average price per kilogram of cardamom varying between Rs 2,254.34 and Rs 2,078.88 per kg. The average prices reported on the previous day were Rs 2,042 and Rs 2,152 per kg.
Similarly, the highest price quoted at the e-auction conducted by the Santhanpara Cardamom Association yesterday was Rs 2,890 per kg.
The previous occasion when the average cardamom price touched the Rs 2,000 mark was on December 16, 2020. The commodity recorded its highest-ever price of Rs 7,000 per kg on January 4, 2020, when the average price recorded was Rs 4,015 per kg. The average price, which fell to Rs 1,011 per kg on December 6, 2021, continued to slide for the next few months to remain below Rs 1,000.
The average price hit a bottom of Rs 718 per kg on June 9, 2022. Though it rose to Rs 1500 per kg by March 11, 2023, the price fell further. The price, however, began to revive in the last couple of months.
Low production
The sharp price rise is attributed to a fall in cardamom production, which has come down by half due to climate change. The cultivation of cardamom is primarily based on the rainfalls received during June and July. Inadequate rain this season has served as a major setback for the farmers, who had already applied fertilisers and pesticides to their crops.
The fall in production levels has also offset the advantages of the farmers of a sharp rise in prices. A bulk of the flower buds that formed on the stem wilted on the plant itself.
According to vendors, the inflow of cardamom to the market has failed to pick up momentum even in August, while in previous years, this gap would exist only up to the first half of June. With no adequate volumes coming in and the flow not expected to pick up momentum anytime soon, the price levels are expected to soar further.
