Small cardamom prices witnessed a substantial decline last week on suspension of seven auctions out of twelve following the liquidity constraints resultant from demonetisation of ₹500 and ₹1,000 notes.

“Farmers did not want to sell fearing delayed receipt of sale proceeds while the buyers were not enthusiastic to buy for want of sufficient funds and that in turn led to the suspension of over 50 per cent of the auctions last week,” PC Punnoose, General Manager, CPMC, a major auctioneer told BusinessLine .

“As the situation is slowly getting back to normalcy majority of the auctions are expected to be held this week,” he said.

Growers are happy to hold back their produce as the crop is going to be less than 50 per cent this season following the failure of both the south east monsoon and the North-East monsoon this year, market sources in Bodinayakannur said.

Total arrivals last week at five auctions stood at 144 tonnes as against 416 tonnes the week before and the sales were at 136 tonnes.

The individual auction average last week dropped to ₹1,261.07 a kg from ₹1,404.29 the previous week and vacillated between ₹1,234 and ₹1,312 a kg.

Exporters also stayed away from the market as the prices were ruling much above their affordable levels, they said.

Total arrivals during the season from August 1 up to November 19, 2016 were at 7,924 tonnes and sales were at 7,462 tonnes.

The individual auction average for the season as on November 19 stood at ₹1,011.80 a kg. Last week auction average was at ₹1,261.07 against ₹1,404.29 a kg the week before.

As the arrivals have shrunk significantly the prices in the local market in the main trading hub Bodinayakannur remained unchanged on Monday . Prices in ₹/kg: 8mm bold good colour 1,400-1,500 ; 7-8 mm 1,250-1,350; 6-7 mm 1,150-1,250 and below 6 mm: 1,000-1,100.

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