Commodities

Export orders and North Indian buying lift cardamom prices

V. Sajeev Kumar Kochi | Updated on December 18, 2019 Published on December 18, 2019

Export orders from gulf countries, other than Saudi Arabia, and North Indian buying has perked up cardamom prices by Rs 100 per kg in the auctions at Bodinayakanur on Wednesday.

Traders are pinning their hopes on the outcome of the visit of a trade delegation to Saudi Arabia, which is expected to sort out the issues connected with cardamom exports to that country. Saudi Arabia is one of the largest market for cardamom in the world, and the revival of exports to that nation would further rejuvenate the market.

There is also a rising upcountry demand, especially from North Indian buyers for re-stocking, and the existing trend would make the market strong and steady in the coming days, traders said.

Anticipatory purchases

The market, according to traders, is now witnessing anticipatory purchases of quality cardamom following the fag end of the harvest season. There is a possibility of lower and inferior quality arrivals in the lean month period of January, February, March and April. The new crop would be expected only by May, traders said.

The total arrivals in the both the sessions was 86.8 tonnes, and they realised a combined average price of Rs 3,336.76 per kg.

In the morning session, the auctioneers GreenHouse Cardamom Marketing India offered 20.5 tonnes of 155 lots in which the average price realisation was Rs 3,283 per kg. The highest prices quoted for selected lot was Rs 3,606.50 per kg.

In the evening trade, the offer made by South Indian Green Cardamom Company Ltd was 66.2 tonnes of 299 lots, which realised an average price of Rs 3,393.65 per kg. The highest price quoted for selected lots was Rs 3,687 per kg.

According to trade analysts Acumen Capital Markets Ltd, the most active cardamom January futures rose by 4 per cent or Rs 130.80 when last traded at Rs 3,402.70 per kg on Wednesday.

Published on December 18, 2019
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