Commodities

Cardamom auctions cancelled again due to poor arrival and tight curbs

V Sajeev Kumar Kochi | Updated on March 20, 2020 Published on March 20, 2020

A poor arrival coupled with practical difficulties in conducting the trade amidst tight safety measures has forced auctioneers to cancel the cardamom auctions at Puttady on Friday.

Traders said that the normal course of trade is likely to be affected in the following days due to the low participation of the traders. They also added that it would be difficult to conduct trade forcefully.

The restrictions and curb on public gatherings, due to the coronavirus outbreak, by the Kerala government also ensured that majority of the traders abstain from trading activities. The limitation in the entry of bidders into the auction hall is also a contributor for a slowdown in the trading process, prompting auctioneers to cancel the auctions.

The presence of Tamil Nadu-based dealers is also important for the smooth conduct of the auctions. But there are reports of denying entry to dealers from that state at the borders as part of discouraging them to travel to virus affected areas. Even the movement of labourers have also been restricted which resulted in a shortage of workers in plantations. All these factors seem to have prompted auctioneers to take a decision on stopping auctions which would automatically restrict all other auctions in the days to come, traders said.

Considering the emerging situation, it is better to avoid conducting the auction with no benefits for any stakeholders in this industry, a trader in Bodinayaknur said.

Unlike other products cardamom is considered to be high-value product and it has a high volatile trend. The industry can flourish in the long run only when all stakeholders support each other.

“Auctions have a practice of inviting all traders wholeheartedly to participate and trade. Unfortunately when the whole world is facing some unforeseen situation, it is still under the question to conduct the auction in such a closed environment with limited headcounts with several restrictions. Only when selling centres are active auction hall energy level bidding trend shows some impact”, the trader said.

Published on March 20, 2020
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