Commodities

Lack of buyer support hit cardamom prices

V Sajeev Kumar Kochi | Updated on February 24, 2020 Published on February 24, 2020

Despite showing a moderate gain in arrivals, cardamom auction market was down by ₹50 per kg across all categories in Puttady on Monday.

The total arrivals moved up to 75.5 tonnes while the combined average price was ₹2,851 per kg. According to traders, the downward trend in prices seems to be an indication of a southward rate movement due to lack of buyer support.

There was a panic across the trade cycle in the wake of price decline, and buyers are reluctant to participate. Traders attribute it to the conclusion of festivals and marriage season in North Indian consuming centres. They are hoping a minimal demand in the upcoming festivals of Holi and Ramadaan. Though the production has entered a lean period, the market is witnessing higher arrivals, which, according to traders, is rare. The quantity offered now is 50 per cent more than the anticipated stock.

In the morning session, Header Systems India Ltd offered 43.6 tonnes, in which 39.5 tonnes realised an average price of ₹2,900. The highest price quoted for selected lots was ₹3,538.

The offer made by Mas Enterprises in the afternoon session was 32 tonnes in which 31.1 tonnes realised an average price of ₹2,802.61. The highest price quoted for selected lots was ₹3,461.

According to trade analysts Acumen Capital Markets, the March futures fell by 4 per cent or ₹122.9 to ₹2,951.9 when last traded on Monday.

Published on February 24, 2020
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