In the absence of active buying support from upcountry buyers, cardamom prices dropped by ₹80 per kg across all categories at the auctions at Spices Park in Puttady on Tuesday.
Traders said demand from the North was weak because of negative sentiments over the upcoming Assembly elections in New Delhi, liquidity crunch, and the cold weather conditions.
After Bodinayakanur, which is a primary trade centre for cardamom, Delhi happens to be the most potential wholesale market and the capital city caters to the cardamom demand of the North Indian States. Any negative sentiments in Delhi market will affect the entire supply chain in North India. Traders pointed out that 60 per cent of the Indian cardamom trade is going to Delhi and surrounding areas.
Traders pointed out that the tightening of security in New Delhi and surrounding areas for the Republic Day celebrations has also affected inter-State transport movement, which is also a factor for slow movement of cargo in the upcountry markets.
Arrivals today were also lower at 55.6 tonnes with a combined average price of ₹3,676 per kg.
In the morning session, the auctioneers KCPMC has offered 45.7 tonnes of 197 lots, in which 45.1 tonnes realised an average price of ₹3,664.52. The highest price quoted for selected lots was ₹4,032 per kg. In the evening session, the auctioneers Cardamom Growers Federation offered 9.8 tonnes of 73 lots in which 7.6 realised an average price of ₹3,687.81 per kg. The highest price quoted for selected lots was ₹4,132 per kg.
Trade analysts Acumen Capital Markets said the most active cardamom futures fell by 2.56 per cent or ₹101 to ₹3,850 when last traded on Tuesday.