Lack of buyer support and subdued upcountry demand dragged cardamom prices down by ₹200 a kg at Puttady auctions on Tuesday.

Traders pointed out that the week-long holiday in many North Indian markets on account of the upcoming Holi festival negatively affected sales. Besides, price fluctuations in the past one week kept buyers away. Moreover, the harvest is not over in plantations and sufficient stocks are still available.

Above all, forecasts on likely summer rains this week in growing regions has affected market sentiments, as intermittent showers would give more yields. There was not much buying by exporters as they seem to be in wait-and-watch mode for a further price drop, traders said.

In the morning session, the auctioneers KCPMC offered 37.23 tonnes in 180 lots. The average price realised was only ₹2,745 per kg. According to traders, the market is likely to be stable as major buyers have come forward to participate. With the conclusion of the harvest season, traders are worried about the inferior quality of capsules coming from the plantations.

Meanwhile, there was no trading session in the afternoon as poor arrivals forced auctioneers to cancel the auctions.

Trade analysts Acumen Capital Markets said cardamom March futures fell by 3.6 per cent or ₹103.7 to ₹2,785.6 at close on Monday.

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