Agri Business

Net disruptions affects digital payments in cardamom transactions

V.Sajeev Kumar Kochi | Updated on December 23, 2019 Published on December 23, 2019


 The recent disruptions in net connectivity in several North Indian cities following the CAA agitations have put many cardamom traders on tenterhooks on account of the delay in getting payments on time.

According to traders, cardamom auctions turnover per day was Rs 30 crore and in one week, the figure would be Rs200 crore. All these payments have been carried out through digital transactions. However, the disconnection of internet service in many of the north Indian consuming markets following the unrest has made undue delay in getting the payments.

Giby Mathew, Director, Acumen Capital Markets, said that his company has witnessed a 10-15 per cent drop in digital payments in commodities and stock market as many of the customers are carrying out mobile trading. Now these net trading customers have started calling the central trading desk to do transactions. If the situation continues, it will worsen the situation as it is the year end where the volumes may witness a dip, he added.

According to traders, cardamom brought from auctions in the primary trading centre undergoes the process of peeling and grading before being dispatched to the end consumer market. The sales and collection of money normally take place at the same pace from these markets. However, the current situation prevailing in the upcountry markets due to issues with regard to internet connections is making delay of the receivables, they said.

Meanwhile, cardamom prices zoomed on Monday at Bodinayakanur auctions receiving a combined average price of Rs 3513.70 per kg. The arrivals remain stable at 99.4 tonnes. The auctioneers Vandanmedu Green Gold Cardamom Producer Co Ltd offered 45.3 tonnes of 215 lots in which 44.7 tonnes realised an average price of Rs 3517.15. The highest price quoted for selected lots was Rs 3913.

The second auctioneer Idukki Dist Traditional Cardamom Producer Company Ltd offered 54 tonnes of 247 lots in which 53.8 tonnes realised at an average price of Rs 3510.25. The highest price quoted for selected lots was Rs 3772.

Published on December 23, 2019
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