Commodities

Improved arrivals ensure participation of all stakeholders in cardamom auctions

Kochi | Updated on March 02, 2020

Improved cardamom arrivals seem to have ensured more participation of traders in the auctions to be held at Bodinayakanur on Monday.

The arrived quantity in the two trading sessions was 79 tonnes, which was on the higher side compared to lower offers in the last few days.

According to traders, every stakeholder is participating in the trade which includes exporters, upcountry buyers, and local buyers .

The declining prices of capsules by about ₹500 per kg in the last one week have attracted exporters to procure their required quantity. The participation of exporters would be expected to further rejuvenate the market as importers in many gulf countries are waiting for a price decline in the domestic market. This is because of a likely shortage of cardamom from Guatemala. Many importers prefer Indian cardamom due to its quality, traders said.

However, a section of the trade cited the reasons for increased arrivals to availability of hoarded stock with the planters especially at a time when the cardamom harvest season has already come to an end, witnessing the presence of low-quality capsules in each trading sessions. Even capsules from upcountry markets which procured in the earlier period are coming to auctions. Their intention is only to receive higher returns; traders said adding that even auctioneers had forced to cancel two or three auctions last week due to the absence of required quality to trade.

“Maybe because of a one-side movement of price, a section of planters who have enough stocks are going for profit booking”, said a trader.

In the morning session, the auctioneers Mas Enterprises has offered 32 tonnes, while the offer made by Header Systems in the afternoon trading session was 47 tonnes.

Trade analysts Acumen Capital Markets Ltd said that the March futures fell by 1.24 per cent of ₹36.5 to ₹2889.3 when closed on Friday. The March futures prices is showing some weakness on the daily chart.

Published on March 02, 2020

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