The cardamom market gained last week on good buying support from the domestic market at auctions last week.
Exporters were seen hesitant to buy, as the average price crossed Rs 800 a kg. However, an estimated 20 tonnes of cardamom were bought by them.
Meanwhile, upcountry buyers were active as the demand for the winter and wedding season has started picking up. The positive trend is attributed to emptying of pipelines in North Indian markets following the boycott of auctions for over a month recently by the traders in protest against raising the minimum bidding rates. Revival in demand from upcountry markets was visible in recent days, market sources told Business Line.
In the meantime, arrivals last week soared to around 495 tonnes which the trade attributed to release of stocks piled up during the suspension of auctions for over six weeks. The arrivals last week had influenced the sentiments in the market negatively for the time being which, the trade claimed, was momentary given the overall crop situation this season.
According to market sources, arrivals are expected to be normal as the crop this season is estimated to be 50 per cent of the output last season. It is, in fact, evident from the arrivals and sales so far in the current season, which is nearly 50 per cent of the arrivals during the same period in the last season. Now, third round of picking is over and the remaining crop would be harvested in two or three rounds of picking and that might last till Feb next year.
Besides, unfavourable weather conditions – the current dry spell, following deficient rains during the South-West and North-East monsoon have also created a bullish sentiment in the market.
At the Sunday auction conducted by the KCPMC, total arrivals surged to 95.5 tonnes from 76.7 tonnes the previous Sunday and the entire quantity was sold out. The maximum price was at Rs 1,096 a kg and minimum was at Rs 515. Auction average price increased to Rs 835 (Rs 778.74), P.C. Punnoose, General Manager, CPMC, told Business Line. Good quality material arrived yesterday and hence the bulk fetched around Rs 800 a kg, he said.
Total arrivals and sales during the current season from Aug 1 to Nov 25 were at 4,137 tonnes and 3,928 tonnes respectively. Where as, they in the corresponding period the previous season were at 7,743 tonnes and 7,546 tonnes, official sources said.
The weighted average price as on Nov 25 stood at around Rs 748.97 against Rs 574.99 on the same date last year.
Prices of graded varieties (Rs/kg): AGEB 1,000-1,010; AGB 785-795; AGS 750-760; and AGS -1: 725-735.