Buyers support likely to keep cardamom prices stable

Cardamom prices are likely to be stable in the auctions on Monday due to the renewed buyers’ support that was witnessed previously.

Despite a downward trend in prices in the last few days, the market, at the fag end of the week, has maintained heavy arrivals. This has boosted the confidence of the sellers this week.

According to the traders, the market regained its strength with the strong support of buyers, especially those from North India.

The total quantity on offer in Monday’s auction at Bodinayakanur was 109 tones. Vandanmedu Green Gold Cardamom Producer Company has offered 51 tonnes in the morning session, while the quantity on offer in the afternoon trade was 58 tonnes. The auctioneers was Idukki District Traditional Cardamom Producer Company.

S B Prabhakar, a cardamom planter, Pambadampara Estate in Idukki said that the auction arrivals last week had surged to 575 tonnes, witnessing a good demand. Exporters were picking up small quantities. There were sparse showers over the growing areas this week. More rains are required next week to get late crop. Pickings and arrivals are expected to reduce by the first week of December.

According to him, the prices had moved up by around Rs 200 per kg last week touching the average price at Rs  3000 per kg and then it slid back to Rs 2850 in the subsequent days due to increase in arrivals. The size of the capsules is gradually coming down. The premium for 8B capsules increased this week. With the approaching winter, it is expected that premiums for bolder varieties to strengthen during the coming weeks. The prices are expected to be range bound between Rs 2700 to Rs 3000 this week, he added.

Trade analysts, Acumen Capital Markets Ltd, pointed out that the most active cardamom December futures rose by 3.59 per cent or Rs96.3 when closed at Rs 2774.90 per kg on Friday. The December futures price is showing some recovery on daily chart.

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