Bullish trend at auction lifts cardamom prices by Rs 50/kg

A bullish trend the cardamom auctions lifted prices by Rs 50 per kg for all varieties, at the Spices Park in Puttady on Tuesday.

According to traders, prices firmed up on the back of speculation by stockists , with the active participation of exporters and other buyers. They projected a positive trend in the morning, following the unexpected gains made in yesterday's transactions.

Traders attributed the speculative trend to the anticipation of lower arrivals in the ensuing months, in the wake of unfavourable climatic conditions in the growing regions. The absence of rains in the last one week and cool breeze in the growing regions, is likely to impact the availability of capsules in January, February and March.

Normally, cardamom growing regions are divided into three zones, A, B and C. Zone A is considered the heart of the growing area, followed by B and C, with lower production. Unfavourable weather conditions in zones B and C would impact productivity, traders said.

The total quantity that arrived in the morning and evening sessions was 83.3 tonnes, realising a combined average price of Rs 2,946.21 per kg.

The auctioneers, SpiceMore Trading Company, Kumily, offered 53 tonnes of 246 lots in the morning, which realised an average price of Rs 2,941.44 per kg. The highest price quoted for selected lots was Rs 3,220 per kg.

In the evening session, the auctioneers, Sugandhagiri Spices Promoters and Traders, offered 30 tonnes of 165 lots, in which 27.6 tonnes realised an average price of Rs 2,950.99 per kg. The highest price quoted for selected lots was Rs 3,169 per kg.

According to trade analysts, Acumen Capital Markets, the most active cardamom January futures dropped by 1.09 per cent or Rs 33.90 when last traded at Rs 3,062 on Tuesday.

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