Cardamom market on a skeptical mode

Cardamom auctions seem to be passing through a skeptical mode, as continuing higher arrivals reported to have hit the liquidity in the market.

Both cardamom arrivals and prices are now on a higher side in the recent period and this has affected the purchasing capacity of traders.

Cardamom transactions, usually carried out on a cash and carry mode, as well as the present trend of higher pricing have forced buyers to pump in more money for taking stock, traders said.

The current price realisation in the range of above Rs 2,800 per kg is the highest in the history of cardamom auctions when compared to Rs 1000 per kg registered in 2010-11. Normally during a price surge, cardamom arrivals would be down. But the existing situation is just opposite in the market. Several factors are contributing to the bullish trend that included higher arrivals, non active traders and above all a favourable climate which may induce further production in plantations.

It is pointed out that the market registered a drop of Rs 50 per kg across all categories on Monday despite heavy arrivals. 

The quantity on offer in the auctions at Bodinayakanur on Tuesday was 101 tonnes. The auctioneers SpiceMore Trading Company has offered 65 tonnes in the morning session. In the afternoon trade, the quantity offered was 36 tonnes. The auctioneers was Sugandhagiri Spices Promoters and Traders.

According to trade analysts Acumen Capital Markets, the most active cardamom December futures gained 1.4 per cent or Rs 40.6 when closed at Rs 2,868 per kg on Monday. The futures trend is showing mixed trend on daily chart.

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