Agri Business

Low arrivals curtail cardamom auctions

V Sajeev Kumar Kochi | Updated on February 04, 2020 Published on February 04, 2020

Low arrivals forced cardamom auctioneers to cancel the sale in the afternoon session at Puttady on Tuesday.

The quantity offered in the morning trade by the auctioneers KCPMC was 23.84 tonnes. Despite lower arrivals, the market continue to remain stable and steady by realising an average price of ₹3,427 per kg in the morning auctions. Of the 137 lots, around 70 were rejection materials which was the reason for the average price to move between ₹3,350 and ₹3,400.

However, traders pointed out that the market is showing a positive grip in spite of limited arrivals and the availability of inferior quality, which is considered a good sign as it points to stabilisation in the market and revival of sales soon. The current negative trend in the market has prompted stockists to stay away, leading to low demand in the last few days.

Lower arrivals are an indication that the current harvest is almost over and the emerging situation may lead to scarcity of the capsules, resulting in gradual rise in prices. Being the fag end of the harvest season, traders are also worried over the availability of inferior quality capsules from the plantations.

Trade analysts Acumen Capital Markets said that most active cardamom March futures fell by 0.15 per cent or ₹5.50 to ₹3,669.90 at close on Tuesday.

Published on February 04, 2020
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