Commodities

Cardamom prices drop by ₹60 on sentiments

V Sajeev Kumar Kochi | Updated on February 13, 2020 Published on February 13, 2020

Sudden spurt in arrivals affects sentiment

Increased arrivals seem to have affected sentiment in the cardamom auction market, which registered a price drop of ₹60 per kg across all categories in Bodinayakanur.

The quantity offered on Thursday showed a sizeable improvement at 81 tonnes compared to reduced arrivals in the last few days, forcing the auctioneers to put off one trading session. Though traders believe that reduced arrivals are an indication of the harvest season, a sudden jump in the quantity offered has worked against the market sentiment, raising the hope that planters are still holding enough stock to liquidate. This has affected prices, despite an upcountry demand and local buyer support, they said.

The market had also reported a price drop on Wednesday due to the presence of inferior quality material. It is also pointed out that the off season has already started, which would extend up to June. This may lead to scarcity of capsules and, in turn, a price increase.

The total arrivals in the two trading sessions at Bodi were 81 tonnes, in which the average price realisation was ₹3,528. In the morning session, Sugandhagiri Spices and Traders Pvt Ltd offered 29.1 tonnes of 167 lots in which 26 tonnes realised an average price of ₹3,551. The highest price quoted for selected lots was ₹4,049.

In the evening session, auctioneers SpiceMore Trading Company, Kumily, offered 51.9 tonnes of 255 lots in which 50 tonnes realised an average price of ₹3,505. The highest price quoted was ₹3,961.

Trade analysts Acumen Capital Markets Ltd said that cardamom March futures fell by 4 per cent or ₹140.6 to ₹3,376.5 when last traded on Thursday.

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Published on February 13, 2020
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