InvestorQ : How does the demand and supply of cardamom work out practically?
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How does the demand and supply of cardamom work out practically?

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2 years ago

The annual global production of cardamom is approximately 55,000 MT, of which India produces nearly 20,000 MT of cardamom with the balance being produced predominantly by Guatemala. Traditionally, India used to be the world’s largest producer of cardamom, but over the last few years, Guatemala in Central America has emerged as the world’s largest producer of cardamom. For nearly 40 years between 1954 and 1996, Guatemala was in the grip of a civil war and it is only since 2000 that Guatemala has been able to realize its full potential in cardamom production. Cardamom requires tropical climate and the lower reaches of mountain ranges are the ideal location for growing cardamom. In India, nearly 90% of the cardamom is produced in the state of Kerala with the balance 10% being produced in the states of Karnataka and Tamil Nadu.

The demand for Cardamom has increased sharply in the last 20 years with the predominant demand for cardamom coming from the Middle Eastern nations. India currently exports nearly 20% of its cardamom output while the balance is consumed domestically. Nearly 80% of the domestic consumption of cardamom in India comes from Western India and North India. Most of the high-grade cardamom gets exported from India mainly to the Middle East nations. India also imports a small share of cardamom from Guatemala, which is used for low-end applications like mouth fresheners and pan Masala.

The Middle East has been one of the biggest markets for Indian cardamom exports. In fact, 4 Middle East nations consisting of Saudi Arabia, UAE, Kuwait and Qatar account for 75% of India’s cardamom exports.