The West Asian crisis has dented the hopes of Indian cardamom exporters gaining competitive advantage in Gulf markets during the ensuing Ramadan season.
The exporters’ fraternity was highly optimistic of making inroads in Gulf nations in the 2026 export season, mainly due to crop failures in Guatemala, the main competitor for Indian cardamom.
SKM Dhanavanthan, a cardamom exporter based in Bodinayakanur, told businessline that the West Asian conflict has triggered global disruption in the supply chain, especially with major shipping lines suspending transit. Importers in Saudi Arabia, Kuwait, and the UAE are now asking to hold back the ordered stocks until the situation improves, he said.
Guatemala crop failure
The 2026 Indian cardamom season has entered a phase of intense volatility as the commodity has become a centre-piece of strategic stockpiling. While a 50 per cent crop failure in Guatemala initially created a global supply vacuum, the recent military strikes involving the US, Israel, and Iran have transformed routine trade into a high-stakes scramble for physical stock. Iran is one the major markets for Indian green cardamom followed by Saudi Arabia, Dhanavanthan said.
As of early March 2026, the initial “Golden Season” for Indian cardamom has hit a significant wall. While the year began with record-breaking export projections, the military conflict has triggered a sudden and severe slowdown in international demand, he noted.
The trend for coming weeks indicates a period of high-pressure stagnation. Unless a clear de-escalation occurs, the historic export target of 14,000 tonnes may remain out of reach, he said.
Lack of carryover stocks
An auctioneer in Vandanmedu in Idukki said that the auction market has been incurring a daily loss of ₹1.8 crore in view of the price drop. Prices have slipped to ₹2,300 per kg from ₹2,450 on a daily turnover of 120 tonnes. Though exports have been completely disrupted, the market is surviving with a strong domestic demand which is expected to pick up further with the start of festival season. The absence of carryover cardamom stock is the plus point in the market. However, if the Gulf crisis persists for long, it would definitely have an impact on prices, he said.
Published on March 3, 2026