InvestorQ : How the price chart of Cardamom has panned out?
nishi Shah made post

How the price chart of Cardamom has panned out?

Aashna Tripathi answered.
3 years ago

Most prices of cardamom are approximations at a point of time and are subject to constant change. These prices are only broadly indicative of the opportunity to hedge cardamom and also to trade. The price of cardamom on a per KG basis had nearly doubled between March 2016 and January 2017. Of course, post Jan 2017, the price of cardamom has retreated as Guatemala has been able to sell cardamom at lower prices compared to India due to higher productivity per acre that Guatemala enjoys compared to India. Since the supply of cardamom is restricted to just two producing nations (Guatemala and India) and the crop is largely dependent on the vagaries of weather, the price of cardamom tends to be quite volatile. Thus the entire cardamom value chain from growers to processors needs to protect their risk exposure. That explains why cardamom futures on the MCX are among the most popular and liquid contracts on a regular basis.