Commodities

Virus panic spooks cardamom market

V Sajeev Kumar Kochi | Updated on March 13, 2020 Published on March 13, 2020

Panic-driven cardamom market has reported a price drop of ₹300 per kg across all categories in comparison to previous week in the auctions conducted at Bodinayakanur on Friday.

Traders attributed the decline to higher arrivals, lower dealer participation as well as rising apprehension on coronavirus among buyers. Planters started releasing stocks in view of the decline in rates. The virus scare has also affected the smooth process in the auctions and there were some disruptions in the trade as well.

According to traders, the majority of primary trade centres in Bodinayakanur are mainly depending on the Delhi market, but the suspension of all official functions in the capital city has slowed down the sales. Sellers are looking at liquidating stocks at the next available opportunity and the higher arrivals in the lean months is quite unprecedented, traders said.

Exporters are also inactive as GCC countries are getting into a shutdown phase and some retail shops are closed. This may lead to reduction in consumption, causing further fall in demand. There were also disruption in cargo movement to a large extent due to quarantine controls imposed in different countries, making exporters wary of being in the auction market, said a source.

The total quantity on offer in the two trading session was 74.1 tonnes, which realised an average price of ₹2,333, which was down from the previous week.

In the morning session, Green House Cardamom offered 18.1 tonnes which realised an average price of ₹2,227. In the evening session, the auctioneers SIGCCL offered 55.9 tonnes which realised an average price of ₹2,440.

Trade analysts Acumen Capital Markets said that cardamom April futures fell by 2.98 per cent or ₹73.8 to ₹2,400 when last traded on Friday.

 

Published on March 13, 2020

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