Cardamom afternoon auctions cancelled due to poor arrival

Low arrivals have forced auctioneers to cancel the afternoon auctions at Puttady in Kerala’s Idukki district on Wednesday.

The arrived quantity in the morning session was 28 tonnes and the auctioneers was Idukki Dist Traditional Cardamom Producer Company.

Due to low arrivals, traders foresee a stable market as in the previous day which would expect to perk up a little demand among upcountry buyers. However, the market is witnessing a slowdown in the entire sales process in the last few days, maybe because of the holiday mood in consuming markets on account of Holi celebrations.

Exporters are not active in the market with limited buying because of the impediments in sending cargo due to flight cancellation in the post virus era.

Traders cited various reasons for cancellation of auctions that include price fluctuation in the market which made the entire trading process a high-risk area. This has forced buyers to stay away from the market. “The cash crunch in the market could be another reason for cancelling the auctions. Lesser arrivals would push a group of sellers who are not satisfied with the current price to stay away from the market,” traders said.

It has been pointed out that January, February and March are considered a lean month period for cardamom, resulting in a slow movement in the sales process. This would, in turn, affect sales. Moreover, the high-priced inventory piling up with stockists also made a further slowdown in the sales process. The price volatility has forced buyers to procure cardamom only for requirement than for stocking, traders said.

COMMENT NOW