Export instability inspection of small cardamom from India

Indian small cardamom is globally recognised for its exceptional quality and acclaim for its exceptional quality, vibrant colour, and adherence to stringent standards over the course of several decades. India’s economy is significantly influenced by its strong domestic demand and rising prices, highlighting its crucial role. The annual export of small cardamom experiences fluctuations due to the necessity of meeting local consumption demands, resulting in a decrease in the overall quantity exported. This study utilized 15 years of yearly price data of export (Values in lakhs rupees) of small cardamom. Three instability measures were used in the analysis (Coefficient of Variation, Cuddy Della Index and Coppock’s Instability Index) to attain the objectives of the study. Throughout the whole study period, there was significantly more volatility in the regional price values than in the global price values. There was lower instability in export between 2011 and 2015, but greater instability between 2016 and 2020. It is suggested that there is a need to strengthen research and development (R&D) for improving the export of small cardamom from India. By implementing best practices in production, quality, and hygienic standards in the supply chain management of small cardamom and with the cooperation of the Spices Board, it is necessary to scale up exports both numerically and qualitatively.

⓿ India occupies the second position in area and production of small cardamom, from an area of 69190 hectare and an annual production of 23340 tonnes during 2021–22.

⓿ Small cardamom has the highest intra-year volatility due to its strong seasonality and limited storability, which make intertemporal arbitrage through stockholding impractical.

⓿ Price oscillations in the small cardamom market were also caused by the instability of the global commerce industry.