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Active participation of stockists and North Indian buyers lifted cardamom prices by Rs 50 per kg across all categories in the auctions held at Spices Park at Puttady on Tuesday.
According to traders, the market is witnessing a positive trend in the last one week in the wake of a surging domestic demand forcing traders to aggressively enter the market on anticipation of lower arrivals in the coming months. As it is the end of the harvest season, condiment manufacturers are also on a buying spree before the prices going up further. In the last week, the market witnessed a price increase of Rs 400 per kg due to institutional and upcountry buying. The fag end of the season also paved the way for the rising price trend.
Traders pointed out that arrivals have started to come down and it is expected to be on a lower note further, which will give more room for speculations. January, February, and March are considered a lean period for cardamom. Cloudy weather in the growing regions without adequate showers in the last fortnight is expected to further aggravate the sentiments in the market.
When the market is witnessing a positive price trend, petty issues connected with disruptions in digital transactions, the impact of trade due to troubles in some centres will be neglected and buyers would like to cover-up more volumes. Exporters would also abstain from the market at these surging prices.
The total quantity on offer in today’s auction was 56 tonnes. In the morning session, the auctioneers Idukki Dist Traditional Cardamom Producer Company (ITCPC) offered 35 tonnes in which the average price realization was Rs 3804.87 per kg. There were 181 lots and some selected lots garnered a maximum price tag of Rs 6016 per kg.
In the afternoon trade, the offer made by Vandanmedu GreenGold Cardamom Producer Company (VGCPC) was 21 tonnes. The average price realized was Rs 3776 in 112 lots. Some selected lots realized a maximum price of Rs 4182 per kg.
Trade Analysts Acumen Capital Markets said that the January futures price is showing a bullish trend on the daily chart.
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