Commodities

Negative trend hit cardamom market, prices drop by Rs100/kg

V Sajeev Kumar Kochi | Updated on November 21, 2019

Pods of green cardamom in a pile   -  iStockphoto

Cardamom auction market witnessed a negative trend on Thursday, recording a price drop of Rs 100 per kg on all varieties.

According to traders, exceptionally higher arrivals right from Monday has affected the market sentiments. Moreover, consistent increase in arrivals impacted both the purchasing power and ability of traders for making timely payments. It is pointed out that cardamom brought from the auctions requires cleaning and grading before dispatching it to upcountry markets. The process is costly and labour intensive, which will have a negative effect in the payment cycle of traders. This, in turn, affect the sales and payments from upcountry customers as well.

It is expected that the negative trend in the market would lead to a slow process of all the other transactions and it would hamper buyers to come forward for new purchase, traders added.

The total arrivals in both morning and evening session conducted at Spices Park in Puttady was 96.6 tonnes with a combined average price of Rs 2817.5 per kg.

In the morning trade, the auctioneers Cardamom Planters Association, Santhanpara offered 31 tonnes in which 28.7 tonnes realised an average price of Rs 2821.62 per kg. The highest price quoted for some selected lot was Rs 3087 per kg.

The auctioneers -Cardamom Planters Marketing Cooperative Society Ltd offered 65.3 tonnes in the afternoon session in which 64.4 tonnes realised an average price of Rs2813.49 per kg. Some selected lots were quoted the highest price of Rs 3080.

According to trade analysts, Acumen Capital Markets Ltd, the most active cardamom December futures fell by four per cent or Rs 111.40 when last traded at Rs 2674 per kg on Thursday.

Published on November 21, 2019

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