Rebounding prices offer growers hope as inclement climate wreaks havoc on cardamom 

Plagued by low productivity, cardamom seems to have lost its “aroma” this year, prompting farmers to call 2024 as one of the worst years in its history.

The beginning of the year witnessed encouraging signs of abundant rains, which soon gave way to prolonged drought up to May that wreaked havoc with the crop. This led to dwindling productivity across growing tracts, according to the farming community.

The small and marginal farmers who cultivate cardamom in less than five acres bore the brunt of nature’s fury as they have no access to irrigation. As a result, the supply from these farmers, who make up the segment offering large volumes of good quality cardamom, shrank hitting the overall production, said PC Punnoose, General Manager, KCPMC.

Rains, fungal attack

Similarly, traditional plantations were also hit by the drought resulting in a plant loss of around 20-30 per cent. The complete devastation of small and marginal farmers’ farm land and plant loss in traditional plantations made a major impact on the sector in 2024, Punnoose said.

Subsequently, the continuous rainfall from June led to a fungal disease outbreak that wrecked the surviving plants. The sector is expecting a 30-40 per cent productivity loss which would drag total volumes to 15,000 to 18,000 tonnes for the year compared with 25,000 tonnes in 2023, he said.

S.B. Prabhakar, a planter in Idukki, said 2024 was a tumultuous year for cardamom cultivation as the severe El Nino drought dented production and caused around 30 per cent loss in crop. The prices have moved up from ₹1,650 in January to ₹2,950 a kg in December. The overall crop is down 50 per cent compared to last year.

Good export prospects

Slump in output will see prices scale up in 2025 and are expected to reach ₹3,500-3,800 by April, he said. Timely spring showers will see the production rebound from August onwards leading to a fall in prices in the second half of the year. However, the replanted areas will take 2 more years to bear yield,’’ he added.

“We should also be able to export good quantities as there is a shortfall in Guatemala cardamom cultivation. Guatemalan production is expected to rebound only after a couple of years. Hence prices should remain above ₹2,300 per kg during next season as well,’’ he noted.

Guatemala’s 2024-25 production is reported to decline by around 45 per cent or 17,500 tonnes compared to the previous season, on account of crop damage due to thrips attack. “With lower yields expected from India and Guatemala, the market is bracing for supply constraints as demand gears up for the festive season. The anticipated shortfall could boost demand for Indian cardamom, creating export opportunities in Gulf markets for their upcoming festive season,” said Nishant Gurjer, Chairman, UPASI Spices Committee. Export during the period April to September 2024 was higher by 743.61 tonnes and was estimated at 2,759.12 tonnes compared to last year.

Outlook unclear

On the outlook, Punnoose said it all depends on the farmers’ ability to manage the next summer. The uptrend in price with an average realisation of Rs 2,900 is perhaps the only silver lining amidst declining crop position.

SKM Dhanavanthan, a cardamom exporter in Bodinayakanur, said technological advancements have bolstered the industry. Innovations like colour sorting machines, grading machines, and improved packaging solutions have enhanced efficiency and quality.

A significant crop failure led to a sharp rise in prices throughout the season. This, in turn, dampened expected sales in many markets. Daily-wage labourers saw reduced opportunities as lower crop volumes stalled routine work across several regions. In summary, 2024 was an average year for the cardamom industry, a year of steady progress but also significant challenges.