Commodities

Cardamom prices up on strong upcountry buying

Our Bureau Kochi | Updated on December 24, 2019 Published on December 24, 2019

The expectations of a strong and steady market on Tuesday at Puttady came true when cardamom prices perked up by Rs 100 per kg across all categories. Traders attributed the rising trend to speculations as well as active participation of stockists and North Indian buyers in further boosting the market sentiments.

At the same time, the market is also facing a cash crunch on account of the higher turnover being witnessed in the recent period as cardamom trade usually conducted on a cash and carry mode. The daily turnover in the auctions on an average was 70 tonnes valued at Rs 21 crore. For the whole week, the figure would come around Rs 120 crore, which would be a whopping one as far as traders are concerned. Many of the buyers are facing liquidity problems to pump in additional payments to buy fresh stock, traders said.

According to traders, the lower production this year also perked up cardamom demand as the auctions witnessed more than 50 per cent drop compared to previous year. The 2018-19 was one of the worst for the cardamom crop with a meagre production of 18,000 tonnes. This lower production has triggered the demand across the consuming markets in North India which enabled farmers to sell at the highest prices in the history of cardamom with an average price realisation of more than Rs 3000 per kg.

However, the assessment was that the next year crop season would be good especially with a conducive climate. As on date, the climate is very favourable and if the growing regions receives at least one shower per month during January, February and March, it would enable the next crop season in a better way and help farmers to start harvest in May itself.

Meawnhile, in today’s auction, the auctioneers SpiceMore Traders Company offered 48.74 tonnes of 225 lots in which the average price realisation was Rs 3493.49 per kg. The highest price quoted by selected lots was Rs 4021 per kg. In the afternoon trade, the offer made by Sugandhagiri Spices Promoters and Traders was 36.31 tonnes in 178 lots and the average price realised was Rs 3492 per kg. The maximum price for selected lot was Rs 3766 per kg.

Published on December 24, 2019
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