Agri Business

Inclement weather impacts cardamom demand in North Indian markets

V Sajeev Kumar Kochi | Updated on January 21, 2020

Cold weather conditions in many North Indian markets seem to have affected sentiments in cardamom auction market with prices likely to remain steady on Tuesday at Spices Park in Puttady.

Traders cited that there has been a subdued demand in many markets resulting in a slow movement. Moreover, the liquidity crisis has also started affecting the purchasing power of many upcountry buyers.

Because of subdued demand, many of them are holding back their stock procured earlier on higher prices. Many of the consuming markets have enough stock, but these traders are not coming forward to sell the commodity at lower prices, traders said, adding that online sales were also on a lower note.  

Besides, the tightening of security in New Delhi and surrounding areas in the recent period on account of ensuing Republic Day celebrations has affected inter-state transport movement, which is one of the factors for a slow movement of cargo in the upcountry markets, traders added.  

The reduced cardamom consumption had resulted in a steady market on Monday, despite a substantial arrival. The trend, according to traders, is expected to continue today as well.  

In the morning session, the auctioneers KCPMC has offered 45 tonnes, while the offer made by Cardamom Growers Federation in the afternoon session was only 10 tonnes.

Trade analysts Acumen Capital Markets said that the most active cardamom futures fell by 3.66 per cent or Rs150.40 to Rs3951 when closed on Monday. The futures price is showing a bullish trend on the daily chart.

Published on January 21, 2020

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