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The declining prices seem to have prompted sellers not to come forward for trading, as is evident in the lower arrivals of cardamom at Bodinayakanur auctions on Wednesday.
The total quantity on offer was only 41 tonnes and most sellers are hesitant to support the market and decided to stay away due to a price drop in the last couple of days. A subdued demand in the North Indian markets, coupled with various other factors including cash shortage have resulted in a slow movement and led to a price drop in the last few days in the auctions.
According to traders, exporters are inactive at these higher prices and moreover the quality of capsules is getting affected since it is the last round of harvest in this season. Since quality parameters are a major issue for cardamom exports, the existing capsules are now mainly bought by condiment manufacturers, traders said adding that online sales were also diminishing in the last few days.
In the morning session, the auctioneers Vandanmedu GreenGold Cardamom Company Ltd offered 23.41 tonnes. The offer made by Idukki Dist Traditional Cardamom Producer Company was only 18.35 tonnes.
Trade analysts Acumen Capital Markets said that the most active cardamom futures fell by 2.7 per cent or Rs 109.8 to Rs 3841.20 a kg when closed on Tuesday. The futures price is showing a bullish trend on the daily chart.
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