The price of small Cardamom has increased by 20 per cent in three months amid robust domestic demand and an output slump.
Average prices touched a decade high of Rs 1,500 per kg from Rs 1,200 three months ago. Premium quality small Cardamom is selling at an even higher rate of Rs 1,700 a kg. The February contract for delivery at the Multi Commodity Exchange (MCX) is hovering around Rs 1,640 per kg.
Production of small Cardamom is expected to halve to 10,000 tonnes in 2018-19 from a year ago.
Industry experts said although export orders from the main buyer Saudi Arabia dried up several months ago with the country imposing a ban on food products containing pesticides, small Cardamom is still being exported to Kuwait, Afghanistan and Bangladesh in the absence of supply from Guatemala, the largest producer of Cardamom in the world.