A cautious approach by traders amidst tensions in the Gulf region seems to have affected sentiments in the cardamom auctions market at Bodinayakanur, which reported a price drop of ₹50/kg across all varieties.

According to traders, the stand-off between the US and Iran has gripped the market as cardamom from India reaches Iran and Afghanistan through various Gulf countries. Other than Saudi Arabia, cardamom exports to Gulf nations are around 1,000 tonnes per year and the emerging situation presents a bleak picture as far as shipments of the commodity are concerned. Exporters were also not active in the market.

Besides, there was selling pressure with improved arrivals, especially when the market witnessed a price rise of ₹800/kg over the past week. However, there was a downward price trend today and a slow movement of lots. Of the 287 lots, only 250 were sold and the balance declared as time-out.

Speculative trend

Traders in the morning reported a speculative trend due to lower production. Any further sale would be possible only with the current stock available for the trade, they added. There is going to be a lean period for three months after January, and a fresh crop would hit the auctions in May.

The total quantity that arrived was 102.2 tonnes with a combined average price of ₹3,874.33/kg. In the morning session, the auctioneers Vandanmedu Green Gold Cardamom Producer Co offered 38.1 tonnes of 183 lots in which 36.5 tonnes realised an average price of ₹3,873.66 and the highest price quoted for selected lots was ₹4,245.

In the evening session, Idukki District Traditional Cardamom Producer Co Ltd offered 64.1 tonnes of 287 lots which realised an average price of ₹3,875.

Trade analysts Acumen Capital Markets said that the most active cardamom February futures fell by 4 per cent to ₹3,916.30 when last traded on Tuesday.

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