SUPPLY and demand trends suggest that Indian cardamom prices could be set for an upward surge.
Market sources in Bodinayakannur told the Indian newspaper Business Line that the coming festival season should fuel demand and that, with low production this season, the price has already begun rising.
Traders in Kumily said inventories in north Indian markets have almost run out.
If the initial trends are any indication, cardamom prices may move upward in the coming days of the current season, which officially began on August 1.
Traders said the pening of new retail outlets in India coupled with increased border trade with Pakistan is said to have contributed to the increase in domestic demand.
Heavy winds and dry spell in June and July have damaged plants in certain growing areas and as a result the output is likely to be lower during the current season, planters said.
Additionally, high input costs and low prices in the previous season had forced many growers to cut down the application of fertilisers and pesticides while some were compelled to give up farm management practices.