Indian cardamom exports surge as Guatemala crop failure redirects demand
Indian cardamom exports are rising sharply after a severe crop failure in Guatemala shifted global demand toward Indian suppliers, even as shipping risks through West Asia remain elevated. Traders expect firm prices to continue, but growers are also facing higher input costs.
Indian cardamom has strengthened its position in export markets, with industry sources saying outbound shipments have effectively doubled despite the continuing crisis in West Asia. The main driver has been a sharp crop failure in Guatemala, India’s principal global competitor. According to The Hindu BusinessLine, Guatemalan production dropped by nearly 50 per cent after a combination of La Nina conditions and pest attacks, pushing a larger share of international demand toward Indian suppliers.
Exporter SKM Dhanavanthan of Bodinayakanur said overseas buyers are increasingly turning to premium Indian bold grades to maintain regular supplies in their existing markets. At the same time, security concerns around shipping through the Strait of Hormuz have not disappeared. Buyers are therefore accepting higher freight costs and using safer alternative routes in order to secure Indian consignments rather than risk supply interruptions.
This stronger export pull is also feeding into the domestic market. Auction prices have remained firm at around Rs 2,200 to Rs 2,350 per kg, according to the report. Planter S. B. Prabhakar from Idukki said the picking season is slowly ending, with only light pickings expected until June. He said the 2025-26 crop is projected at about 35,000 to 37,000 tonnes because weather conditions were better and farmers maintained their plantations well.
Prabhakar added that the April heat wave hurt the crop, but abundant showers in May helped the plants recover and left them in good condition. The Iran war initially disrupted cardamom movement, although that situation is now improving. Market participants also believe that higher oil prices could lift cardamom consumption in Gulf markets, which remain an important demand centre for Indian exporters.
If rainfall remains normal and farm maintenance stays strong, production could reach 40,000 tonnes in the coming season. With export demand improving and domestic demand also holding up, prices may stay around current levels even if arrivals rise. The main counterweight is cost pressure: growers are facing higher prices for fertilisers and agrochemical inputs, which will raise production costs even in a favourable export market.