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Cardamom prices crashed last week on heavy arrivals at auctions held in Kerala and Tamil Nadu.
Individual auction average dropped to below Rs 600 to around Rs 540 a kg, probably the lowest average during the current season, as supply outstripped demand.
The declining trend in the market has made the buyers to slow down purchases, hoping prices would fall further.
Quality cardamom arrivals were around 30 per cent and much of the material arrived were of average quality, market sources in Bodinayakannur told Business Line . Arrival of 8 mm bold colour capsule was of negligible quantity. “Non-arrival of good quality material coupled with heavy arrivals led to the price fall,” they claimed.
Non-availability of sufficient workers to handle the huge quantity every week is also affecting the trade, they said. Torrential rain in the high ranges is creating problems, they pointed out.
According to the market sources, a regulated release of the material by the growers as a market intervention exercise could only arrest the current downward trend in the prices. “They should retain at least one-third of their output till the market stabilises,” they said.
Exporters were not active, but they are expected to enter the market after the Eid holidays, they said.
At the Sunday auction conducted by the KCPMC, arrivals soared to 89 tonnes from 74 tonnes last Sunday, Mr P.C. Punnoose, General Manager, CPMC, told Business Line . The maximum price was at Rs 920.50 a kg, while the auction average dropped to Rs 537.13 a kg from Rs 614.19 a kg the previous Sunday.
Total arrivals have gone up to about 465 tonnes of which there was a withdrawal of around 15 tonnes last week.
Total arrivals during the current season up to August 28 stood at 1,643 tonnes against 580 tonnes in the same period the previous season.
Sales during the period were at 1,605 tonnes and 577 tonnes, respectively.
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