Agri Business

Low quality keeps prices down at cardamom auctions

V. Sajeev Kumar Kochi | Updated on January 28, 2020 Published on January 28, 2020

Low quality arrivals affected the average price realisation in cardamom auctions in Bodinayakanur on Tuesday.

Traders pointed out that the average price realised was in the range of ₹3,650 to ₹3,700 per kg and the majority of lots offered was bulk, which came directly after harvest. Such capsules are less in size and inferior in quality.

However, the overall market has registered an upward trend in prices at ₹40-50 across all categories, mainly on account of lower arrivals. Traders pointed out that limited arrivals are expected to provide a stability in the market and boost up sentiments as well as prices. The prevailing humid climate in the growing regions is also a positive factor to help improve the sentiments in the coming days. 

But cash shortage is a negative factor, which is currently affecting the market. With the stabilisation of the market, traders say that there could be good deals that would generate a steady flow of sales, thereby improving the liquidity problems. 

The total quantity offered in the two trading sessions was 42.1 tonnes with a combined average price of ₹3,685 per kg.

In the morning session, the auctioneers Cardamom Growers Federation offered 9.1 tonnes of 59 lots in which 8.3 tonnes realised an average price of ₹3,706. The highest price quoted for selected varieties was ₹3,975.

In the afternoon trade, the quantity on offer made by the auctioneers Kerala Cardamom Processors and Marketing Company (KCPMC) was 32.9 tonnes of 176 lots. The average price realised was ₹3,665.44 and the highest price quoted for selected lots was ₹3,999.

Trade analysts Acumen Capital Market said that the most active cardamom March futures gained by 0.98 per cent or ₹38.20 to ₹3,9501 when last traded on Tuesday. 

Published on January 28, 2020
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