As we move into the second half of 2024, several things are affecting the price of cardamom. These factors are creating a complex situation for people involved in the cardamom market. Because of various factors, cardamom prices today in Kerala are frequently changing.
Factors Behind Cost
The supply chain is one of the most important things that can’t be avoided while determining the rate chart. Cardamom comes from places like India and Guatemala. The availability of rain affects how much they can produce. Diseases hurting their cardamom crops are a main concern in Guatemala. The higher the cost of fertilizers, the lesser the cardamom produced, the higher the prices.
Factors like demand are almost stable because cardamom is a thing that people really like, as it’s good for cooking and has many health benefits. These benefits make the demand for cardamom go up. If the economy slows down, there is a chance for people to buy less cardamom.
Beyond these natural factors, there are more external factors that are behind the elaichi rate. Trade deals and the value of money also play a part. For example, the relationship between India and the UAE might lead to more cardamom being sold. The Indian rupee is getting weaker compared to the US dollar. This could make Indian cardamom cheaper and more attractive to buyers overseas.
Kerala exports cardamom to particular countries in the Middle East, Europe, and North America. Therefore, global market trends will seriously affect the rate chart when it comes to trade agreements and other geopolitical factors. Speculative activities by traders, investors, or speculators in the cardamom market can also lead to short-term price fluctuations.
Transportation and infrastructure facilities, from farms to markets, can affect the cost, as any disruptions or inefficiencies in transportation and logistics can impact the process.
Price Outlook
Based on all these factors, it’s expected that the price of cardamom in Kerala will go up, especially for green cardamom, reaching around Rs. 1750 per kg. Large cardamom prices might also go up to about Rs. 1350 per kg. But things can change quickly, so it’s important for people involved in the cardamom market to keep an eye on what’s happening in the world. Factors like weather, diseases, trade deals, and the economy can all affect the price of cardamom.