Rain sentiments and higher volumes have affected cardamom prices at Bodinayakanur on Wednesday that witnessed a drop of ₹100 per kg across all categories.

According to traders, the weather forecast for a two-day rain in plantations and scattered showers from Tuesday negatively affected the sentiments in the market. It is widely reported that summer showers would further rejuvenate the vegetative growth in plantations and in turn give more yields.

The market has witnessed heavy arrivals of 65 tonnes and this, according to traders, is unnatural especially in the lean month period. The increase in arrivals is an indication that planters are trying to liquidate their stock at the early available opportunity. This has impacted the prices.

As volatility is continuing in the market, many buyers are expecting a price stability at a particular point that would enable to create a demand, which is lacking.

Exporters are also not active and may be waiting for a further drop in prices, traders said.

In the morning auctions, the auctioneers Vandanmedu Green Gold Cardamom Producer Company offered 25 tonnes of 162 lots and the average price realised was ₹2,648, The highest price quoted for selected lots was ₹3,390.

The offer made by Idukki Dist Traditional Cardamom Producer Company was 40 tonnes and the average price realised was ₹2,660.

Trade analysts Acumen Capital Markets said that the March futures fell by 4 per cent or ₹107.5 to ₹2,580 when traded on Wednesday.

 

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