Commodities

Improved cardamom arrivals to ensure a stable market

V Sajeev Kumar Kochi | Updated on February 19, 2020 Published on February 19, 2020

With a slight improvement noticed in arrivals, traders are expecting a stable price in cardamom auctions on Wednesday with minimal participation of buyers.

As the auction centre is in Bodinayakanur, traders pointed out that buyers would ensure at least a minimum participation given the proximity of the location to several primary trading centres. The quantity offered in the two trading session was 50 tonnes.

In the morning session, the auctioneers VGCPC offered 19 tonnes, while the offer made by Idukki Dist Traditional Cardamom Producers Company was 31 tonnes.

However, traders believe that an optimistic feeling among buyers is absent as far as cardamom trade is concerned and the average prices are moving higher by two to three times in a crop season compared to previous years. In this situation, it is very difficult to maintain stability in prices unless there is a genuine demand and sales happening in the consuming centres.

The only solution for active participation is to ensure consensus among traders at a comfortable price range.  However, such a compromise cannot be guaranteed when the market is showing higher volatility, traders said.

Besides, the highly erratic weather pattern being experienced in the growing regions with temperature shooting up to 33 degrees in the morning time and 14 degrees by night is pushing up plants to a stressful the situation, which will negatively affect the productivity. Intermittent rains are a requirement now for vegetative growth, they added.

Trade analysts Acumen Capital Markets said that cardamom March futures fell by 4 per cent or Rs130.8 to Rs3140.5 when closed on Tuesday. The March futures price is showing some weakness on the daily chart.

Published on February 19, 2020
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