Agri Business

Cardamom gains aroma on strong buying support

V. Sajeev Kumar Kochi | Updated on November 19, 2019 Published on November 18, 2019

The quantity on offer in the morning trade was 49 tonnes. File Photo   -  The Hindu

 

A firm demand from exporters, North Indian buyers and stockists together lifted the prices of average quality cardamom by ₹100 per kg in the auctions held on Monday at Spices Park in Puttady. The superior quality was also ruling higher at ₹150 per kg.

The continuing upward trend in prices is facilitating farmers to liquidate their stock, which, in turn, has led to higher arrivals. The total quantity on offer was 82 tonnes, with a combined average price of ₹2,956.2 per kg and the presence of superior quality has ensured selling full quantities in the auctions, traders said.

In the Monday session, the auctioneer Idukki Dist Traditional Cardamom Producer Company offered 49 tonnes of 252 lots, which realised an average price of ₹2,911 per kg. The highest price quoted was ₹3,140.

In the afternoon trade, the offer by Vandanmedu Green Cardamom Producer Company was 33 tonnes of 172 lots. The average price realised was ₹3,001 and the highest price quoted for some selected lots was ₹3,225 a kg. According to trade analyst Acumen Capital Markets Ltd, the most active cardamom December futures gained 4 per cent or ₹109.9 at ₹2,858 per kg.

SB Prabhakar of Pambadampara Estate in Idukki pointed out that prices had moved up by around ₹300 per kg in the last week and the average is currently around ₹2,800.

The auction arrivals were 435 tonnes, witnessing good purchase and demand. Exporters were picking up small quantities. There were sparse showers over the growing areas and more rains are required next week to get late crop. If rains do not arrive next week, the prices could move above ₹3,000, he said.

The size of the capsules is also gradually coming down. The sector expects premiums for bolder varieties to strengthen during the coming week. Also, Guatemala cardamom picking is late and has just commenced. They are expecting a smaller crop this year. Hence, the fundamentals of the markets may continue to be bullish, he added.

Published on November 18, 2019
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