Limited supply of cardamom and robust demand could further push up prices, which are already at record levels, by another 10-15% in the next few months, a report from Agricultural Market Intelligence Centre (AMIC) of Kerala Agricultural University said.
The commodity is in very short supply and the demand, both from the international and domestic market, continues to be good, K Satheesh Babu of AMIC told FE. Based on current market prices and expected demand for cardamom, AMIC forecast that prices would be in the range of Rs 1,020-1,075 per kg in April, Rs 1,050-1,100 in May and finally reach Rs 1,075-1,125 in June.
In the last auction held on Wednesday by the Cardamom Processing Marketing Company, Kumily, average price of cardamom was Rs 1,033 per kg with nearly 47 tonne coming up for auctions.
Sources say that the prevailing high prices are prompting farmers to sell all their stocks to make good profit and most of arrivals at auctions are old stocks. Drought in the main production region of Idukki is pushing up the prices to unrealistic levels.
Absence of rain in Idukki has damaged plantations without irrigation facilities and the low water table in the hilly region is threatening even plantations with irrigation facility, sources in the Cardamom Growers Association said.