Spice prices in Kerala have seen a sharp uptick in recent weeks, with black pepper selling above ₹650 a kg and cardamom touching ₹3,120 a kg in auctions. The rise comes amid low stock availability and reduced cultivation, especially in key growing regions like Idukki.
At a recent auction by Greenhouse Cardamom Marketing India, the highest recorded bid for cardamom reached ₹3,120 a kg. Market sources say this is the highest price seen in nearly four years. In general trading, cardamom is selling for ₹2,718 to ₹2,750 a kg depending on the grade.
Black pepper, too, has seen a significant rise. Market rates in Kerala have crossed ₹650 a kg, a marked increase from the ₹250–₹270 levels that prevailed during the Covid years. During that period, a large number of small and mid-scale farmers had exited cultivation due to poor returns and rising costs.
The current price surge appears to be driven by a mismatch between demand and supply. Many farmers had scaled down or stopped production entirely in recent years. With limited fresh arrivals and stocks running low, traders say prices are likely being pushed up by short-term supply constraints rather than a sustained market trend.
There are also reports that some growers who held on to old stocks are now beginning to release them into the market, taking advantage of the favourable pricing. However, the total available volume remains considerably lower compared to pre-pandemic levels.
Despite the positive sentiment in the market, industry observers remain cautious. With fewer farmers engaged in cultivation and no significant increase in area under production, the sustainability of the current price level is uncertain. Any sharp increase in future supply could potentially lead to a correction.