Lower arrivals boosted cardamom prices by ₹100 a kg across all categories on Monday auctions at Puttady.

According to traders, there was active participation from local trade, while upcountry buyers were involved in a limited way. The futures market and online trading witnessed an upward tend.

Since the crop season is coming to an end by February, traders anticipate that prices may boost further, especially in the wake of lower arrivals and revival of demand in Delhi after the polls.

Quoting latest reports, SB Prabhakar, a cardamom planter in Pambadampara Estate of Idukki, pointed out that the Guatemalan cardamom crop is around 40 per cent less this season due to drought. Because of this, cardamom prices have doubled in that country since the beginning of the season. There is good demand from the West Asian market. So, it looks like prices will remain firm to bullish in the short term in the domestic market here.

However, much will depend on the weather in March. There has been no proper rain for the past two months. Spring showers are expected only around the third week of March. The prices could rally in February and March in the absence of rains, he said.

There should be a rebound in production in both India and Guatemala in the coming season. Better care of plantations and new planting is bound to take place. Prices are likely to come down by June/July when the new crop hits the market, Prabhakar added.

The total arrivals in the two trading session was 65.8 tonnes with a combined average price of ₹3,726 per kg.

In the morning session, the auctioneers’ Header System India Ltd offered 30 tonnes of 167 lots, in which 28.9 tonnes realised an average price of ₹3,720.98. The highest price quoted for selected lots was ₹3,968.

The offer made by Mas Enterprises in the afternoon trade was 35.5 tonnes and the average price realised was ₹3,731.52. The highest price quoted for selected lots was ₹4,162.

Trade analysts Acumen Capital Markets said that the most active cardamom March futures gained by 1.64 per cent or ₹63.8 to ₹3,948.80 when last traded on Monday.