Why the world is turning back to Indian cardamom

In today’s episode on 6th Jan 2025, we tell you why cardamom prices have been rising and why Indian farmers are filling the gap to meet demand. Register for Peakst8 Festival here https://app.peakst8.club/event/bismuth-cull?ref=finshots.in&id=finshots&utm_campaign=peakst8_festiva_launch&utm_source=finshots&utm_medium=news&parsedObject=%7B%22nonConflictingActivityIds%22%3A%5B%22fa0449c7-a95a-4c14-865c-bf3a9888e065%22%5D%2C%22conflictingActivityIds%22%3A%5B%22fc63e902-a2b8-459e-9087-3063091500b1%22%2C%225b5d7048-bc66-4f26-832f-5d77499639e7%22%5D%2C%22selectedPass%22%3A%22958d4636-b2d3-4ce1-b4b5-2bbe6982fd0c%22%2C%22generalPass%22%3A%224001c046-e99b-4f59-bae1-f8515272abc0%22%7D&currentForm=CATEGORY_FORM

• 0:00Speaker 00

  Hello folks, you are tuned into Finshots Daily and in today's episode, we tell you why cardamom prices have been rising and why Indian farmers are filling the gap to meet the demand.

• 0:11Speaker 00

  But here's a quick side note before we begin. At Finshots, we strive to simplify financial news for Indians. Now, the folks at Rain Matter by Zeroda, also our investors, are trying to do something similar but with fitness. They've launched Peak State, a one-day fitness festival meant to make fitness feel less intimidating and more approachable. Think high rocks mini-challenges, easy runs, yoga, spin sessions, tai chi, aqua pilates and a lot more. A space to explore what works for your mind and body. Now, if that sounds like your vibe, you can check the link in the description to register. Alright, back to today's story. Every evening after a long day at work, some of us like to head out for a nice hot cup of chai.

• 0:56Speaker 00

  Sorry, coffee lovers, the routine is almost automatic. We add eli chi without even a second thought. It's just there, floating between ginger and milk, doing its job quietly, packing a punch in that small cup of tea. But that tiny pot sits at the centre of one of the world's most fragile spice markets and its story stretches back thousands of years. For much of its history, many spices were indigenous and exclusive to India. Turmeric, pepper and chilli is were among them. Cardamom belonged to that list too, long before it became a globally traded commodity. Choti eli chi, literally translated as small cardamom, grew wild in dense forests of Western Ghats across present-day Kerala, Karnataka and Tamil Nadu.

• 1:40Speaker 00

  This spice was so valuable that the region where it thrived came to be known as the cardamom hills. Dating back nearly 4,000 years, cardamom travelled from these forests through Indian ports to the Middle East and Europe, prized for its aroma, medicinal use and rarity. That history still shows up in its price today. Even now, cardamom remains the third most expensive spice in the world after saffron and vanilla. India never stopped growing it, but over time, the global cardamom market shifted away from its place of origin and into the hands of another country. And that shift set the stage for the fragile market that we see today. Despite being native to India, Guatemala is now the world's largest producer of cardamom.

• 2:25Speaker 00

  To understand how that happened, let's tell your story. In 1914, a German coffee planter named Oscar Mehis Klofer took cardamom pods from Kerala to his coffee estate in Kewa, Guatemala. And the spice thrived because it grows best in cool, humid conditions, temperatures between 15 and 35 degrees, steady rainfall and forest cover. The Western Ghats offer this naturally, but so does Guatemala's highland region. Yet, climate alone didn't reshape the trade. Cardamom isn't the third most expensive spice in the world by accident. It retails between 2,400 to 3,150 rupees per kilo because it demands constant care.

• 3:07Speaker 00

  The crop needs regular weeding, steady water supply during dry months, adequate sunlight during monsoons and years of patience. Farmers wait two to three years before seeing a harvest, even then, the pods are handpicked. That makes cardamom highly sensitive, fungal infections and pest attacks can wipe out entire harvests. This made large-scale expansion risky for Indian farmers. As a result, cardamom cultivation remained fragmented and largely smallholder-driven rather than plantation-led. So, where India stepped back, Guatemala stepped in largely because of one key difference. In India, cardamom harvesting is squeezed into a short peak window between September and November. That makes the crop incredibly vulnerable.

• 3:53Speaker 00

  A fungal outbreak during the monsoon months can wipe out an entire year's income in one go. Guatemala works very differently. Harvesting happens almost all year round, so even if pests or diseases hit one cycle, farmers still have other harvests to fall back on. The risk is spread out and incomes are far more stable. Which is how, over the past century, Guatemala scaled production aggressively, emerging as the world's largest producer of cardamom. It would produce roughly 35,000 tonnes annually, about 60% of global supply. Large plantations focus solely on cardamom, especially in regions like Altavirpas, where around 3 lakh farmers produce nearly 70% of the country's output.

• 4:35Speaker 00

  This kept costs low and made Guatemala the go-to source for price-sensitive markets. But concentration has a cost, because scaling a fragile crop works until conditions change. That moment arrived with El Nino, a climate phase that warms Pacific Ocean surface temperatures and disrupts weather patterns globally. Between 2023 and 2024, El Nino altered rainfall cycles, raised heat stress, and increased disease pressure across major cardamom-growing regions. For decades, Guatemala's dominance looked unshakable. But cardamom doesn't care who dominates the market. When weather patterns turned erratic, losses spread quickly across tightly-packed plantations. A system built for efficiency struggled with volatility.

• 5:19Speaker 00

  And that's when the market felt it. As supply tightened, prices rose. Buyers who had long relied on a single source were forced to reassess their dependence, especially importers in the Middle East, one of the world's largest cardamom markets. Here, cardamom is a staple in traditional coffee, desserts, and everyday cooking. Crucially, these buyers are not particularly price-sensitive. Aroma and quality matter more than cost. That shift played directly to India's trends. Indian cardamom, known for its higher oil content and strong aroma, began drawing renewed interest. And it wasn't just because India is the second-largest producer. Its fragmented shade-grown cultivation model meant lower concentration risk.

• 6:02Speaker 00

  When some regions were affected, others held up. Even after drought stress, India is still expected to produce around 22,000 tonnes this year. As buyers search for reliability, Indian farmers found themselves in an unexpected position of strength. Auction prices firmed up, with Indian cardamom now trading nearly 3,150 rupees per kilo. Now that's around 35 dollars per kg. That said, rising prices don't always translate cleanly into gains for farmers, especially smaller, lesser-known growers. One reason lies in cardamom registration, or CR. In India, cardamom must be sold through registered auctions, and growers need a CR number issued by the Spices Board of India.

• 6:46Speaker 00

  While the system ensures traceability and quality, it also means farmers without registration or those producing small quantities often have limited bargaining power and realize lower prices.

• 6:58Speaker 00

  Still, the larger shift is hard to ignore here. In hindsight, what once looked like hesitation now looks like restraint. And in a world where climate shocks are becoming more frequent, restraint may turn out to be the most valuable strategy. After all, cardamom did originate from here. So, the next time you stir a lychee in your evening tea, remember that small green pod has travelled continents, reshaped markets and survived a climate shock that rerode the global spy street. For the time being though, India does not need to match Guatemala's volume to benefit. It only needs to supply the part of market that is missing watermelon supply.

• 7:40Speaker 01

  Thank you for listening to today's episode. And if you want to share your feedback or suggestions, do drop us an email to [email protected]. Until next time.