Agri Business

Cardamom auctions continue to witness low arrivals

V. Sajeev Kumar Kochi | Updated on January 27, 2020 Published on January 27, 2020

Cardamom auction market continues to witness low arrivals on Monday at Spices Park in Puttady with the total quantity offered in the two trading session was only 65 tonnes.

The offered quantity, according to traders, is 50 per cent lower than what arrived during the previous weeks and low offers are expected to provide stability in the market, thereby boosting up the prices.

S.B.Prabhakar, a cardamom planter in Pambadampara Estate of Idukki pointed out that prices have come down to around ₹200-250 per kg last week on the backdrop of a tepid domestic demand and security restrictions due to Republic day. With no proper rain since the past two months and spring showers expected only around the third week of March, the prices could rally up in February and March.

Also, the latest reports show that the Guatemalan cardamom crop is around 40 per cent less this season due to drought. Guatemalan local cardamom prices have doubled there since the beginning of the season. There is good demand from the West Asian market. So, it looks like prices will remain firm to bullish in the short term. Much will depend on the arrivals of rain in March, he said.

There should be a rebound in production in both India and Guatemala in the coming season. Better plantation care and new planting is bound to take place.

The prices are likely to start coming down by June/July when the new crop hits the market, he added.

In the morning session, the auctioneers' Header System India Ltd offered 30 tonnes, while the offer made by Mas Enterprises in the afternoon trade was 35 tonnes.

Trade analysts Acumen Capital Markets said that the most active cardamom March futures gained 1.06 per cent or ₹41 to ₹3,885 when closed on Friday. The March futures price shows some recovery on the daily chart.

Published on January 27, 2020
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