Agri Business

Changes in weather, extended summer expected to boost cardamom prices

V. Sajeev Kumar Kochi | Updated on March 12, 2020

Gulf importers prefer Indian cardamom because of its quality NAGARA GOPAL NAGARA GOPAL

A change in rainfall pattern is likely to revive the cardamom market, with prices expected to hold steady in the auctions at Bodinayakanur on Thursday.

According to traders, contrary to forecasts for widespread rain in the cardamom growing tracks in the last few days, the showers were limited to the high ranges. This has boosted sentiment in the market as the summer would prolong, further delaying the arrival of fresh crops. This is expected to lift prices in the coming days.

However, traders expect minimal participation from both upcountry buyers and local business communities in the wake of lower arrivals, which signal the end of the current harvest. The entire sales process has slowed down, given that production is lean during January, February, and March. Export demand from many overseas destinations has also been subdued.

The total quantity offered in today’s auctions was 50 tonnes. The auctioneers, Sugandhagiri Spices Promoters and Traders, offered 23 tonnes in the morning session, while Spice More Trading Company, Kumily, offered 27 tonnes.

Trade analysts, Acumen Capital Markets, said cardamom April futures dropped by 0.23 per cent or Rs 5.9 to Rs 2,540 when last traded on Wednesday.

Published on March 12, 2020

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