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The prolonged winter in North Indian cities seems to have taken its toll on cardamom auctions on Wednesday, with the prices registering a Rs 50-100 drop in different categories in the wake of minimal buyer participation.
This was basically because of the inactive participation of upcountry buyers as cold wave sweeping across the northern Indian market hit retail sales of cardamom in major cities, said traders. The winter coupled with the absence of any major functions in North India also resulted in a subdued demand. There were reports of closing down of shops during day time and this has affected the overall sales of cardamom.
Around 5000 kg of capsules was not sold in the auction held today at Bodinayakanur as lot movements in the trading process was slow due to the non active participation of upcountry buyers. The market was mainly handled by local buyers from Tamil Nadu to cover up the Pongal requirements as well as stockists. Exporters were also inactive as the surging prices forced them to stay away from the market.
Though arrivals was comfortable, prices declined following a muted demand which is expected to continue in the coming days. The market is expecting one more round of harvest during January-February and the next crop season will purely depend on climate as middle summer showers expected to stabilise the May crop, traders said.
The total quantity offered in both the trading sessions was 104 tonnes. The auctioneers Sugandhagiri Spices Promoters and Traders has offered 37.96 tonnes in which 36.14 tonnes was sold. The average price realised was Rs 3756.37 per kg. There were 194 lots and some selected lots registered a maximum price of Rs 6104 per kg.
The offer made by SpiceMore Trading Company, kumily in the afternoon auction was 67.76 tonnes. But the quantity sold was only 61.56 tonnes due to the delay in lot movement. The average price realisation was Rs 3755.26 per kg in 295 lots and some selected lots received a highest price tag of Rs 4758 per kg.
According to trade analysts Acumen Capital Markets, the January futures price is showing a bullish trend on the daily chart.
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