Cardamom – the “Queen of Spices” is one of the most valued and highly prized spices that are available to us. It is known for its high medicinal qualities and commercial aspects. The cardamom spice primarily grows in the different part of Indian subcontinent. There are different types of cardamom that are used for different purposes. For instance, it is widely used in tea to add flavour and aroma to it.
As far as the price is considered, cardamom is the third most expensive spice after vanilla and saffron and hence plays a vital role in the commercial market. It takes almost two years for a cardamom plant to bear fruits and thus requires high maintenance and investment. Apart from India, the only place where cardamom grows is Guatemala. It was introduced in the country in the 20th century and now it has become the largest producer of the spice.
However, there are few other places where harvesting is done but those regions are insignificant when it comes to meeting the global demand for cardamom. Guatemala alone holds the record of producing world’s two-thirds of cardamom.
Since cardamom is so scarcely available, it is greatly in demand in the western countries. Moreover, the dried form of cardamom is also preferred by many. Cardamom is used in different recipes across India. Again, the oil derived from the cardamom seeds are of huge importance.
The oil is used for adding flavour to food as well as used for medical purposes. There is numerous application of cardamom as a whole. Hence, it is always great in demand across the globe. Apart from Indian, people in Europe, the USA, and Japan as well as in the Middle East make use of the cardamom for various reasons. Because of its huge demand and less availability, cardamom plays a vital role in an economy.
FACTORS INFLUENCING THE MARKETS
These were few of the important factors that have a significant impact on the markets. However, there are numerous other reasons which affect the global market trend of cardamom. A cardamom stakeholder will need to evaluate these vital factors as well as work on risk management strategies before taking a step.