Inferior quality capsules and a slower upcountry sales caused a ₹50 drop in cardamom prices on Wednesday.

There was only a single trading session in the morning, as lower arrivals has forced auctioneers to cancel the afternoon auctions at Puttady for the second time in less than 10 days in the current harvest season.

Traders pointed out that the arrived quality was not good and the majority of the lots were rejection materials for which there were hardly any buyers. Besides, the upcountry sales was dragging due to high-priced inventory in various trade centres as traders wanted to book profits, for which the market had not responded positively.

According to traders, lower arrivals in the auctions are an indication of the end of the current harvest season. This may result in a gradual increase in prices.

The next crop season is expected to start by July, but it will depend on the intensity of summer. In the event of high temperatures, the new season may be delayed. However, intermittent rains during the lean period may help in timely commencement of the next harvest.

The quantity offered in the morning session by the auctioneers - Idukki Dist Traditional Cardamom Processing Company - was 27.06 tonnes. Of this, 24.96 tonnes was sold. This realised an average price of ₹3,576. Some selected lots quoted a higher price tag of ₹4,003.

Trade analysts Acumen Capital Markets said the most active cardamom March futures fell by 2.2 per cent or ₹81.6 to ₹3,615.9 when last traded on Tuesday.

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