Commodities

Cardamom afternoon auctions put off at Puttady due to poor arrivals

V Sajeev Kumar | Updated on February 18, 2020

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For the third time in the current harvest season, a poor arrival has forced auctioneers to cancel cardamom auctions in the afternoon session at Puttady on Tuesday.

According to traders, the absence of sustainable quantity in the auctions would turn away buyers especially at a time when the market is witnessing a slower demand and subdued sales. There is no guarantee for price stability in the midst of a slow market.

Besides, the market is facing a liquidity crunch forcing the buyers to stay away from the market. It has been pointed out that the surge in cardamom prices has forced buyers in the wholesale market to pump in more money for procurement. But the delay in receiving the payment from retailers in the wake of a subdued demand has started affecting the cash flow in the market. They cited higher inventory in the upcountry markets as a reason for the subdued demand.

The auctioneers KCPMC has offered 37 tonnes of 182 lots. Traders hope that the market is likely to be stable amidst lesser arrivals.

However, the weather forecast for afternoon showers for Bodi-Cumbum-Kumily belt from this weekend have given a hope for the trade for a timely harvest in the next harvest season commencing early June.

Trade analysts Acumen Capital Markets Ltd said that cardamom March futures fell by 0.06 per cent or Rs 2.1 to Rs 3,271.3 when closed on Monday.

Published on February 18, 2020

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