High-priced inventory, both at primary trade centres and consuming markets, seemed to have a say on cardamom prices, which dropped at Puttady auctions on Wednesday.
Because of this, traders remained inactive in the two trading sessions and that impacted the prices in spite of lower arrivals. There was no active involvement of buyers. Many of them are on a wait-and-watch mode to liquidate stocks and this led to lesser sales, lean buying and higher credit cycle.
Besides, the current harvest from the plantations are of inferior quality and smaller in size at the fag end of the season. This has also added to the sentiments.
The arrivals in the two trading session was 23.6 tonnes, which realised a combined average price of ₹3,660 per kg. The upcountry buyers were not active because of the huge time gap between the two trading sessions. The morning auction was completed in one hour, forcing buyers to wait for long for commencement of the second session, traders said.
In the morning session, the auctioneers Idukki Dist Traditional Cardamom Producer Company offered 11.8 tonnes, which realised an average price of ₹3,655.21 per kg. The highest price quoted for selected lots was ₹3,898.
In the evening session, Vandanmedu Green Gold Cardamom Producer Co offered 11.8 tonnes in which 10.8 tonnes realised an average price of ₹3665.92. The highest price quoted for selected lots was ₹3,905.
Trade analysts Acumen Capital Markets said that most active cardamom March futures gained by 1.64 per cent or ₹64.5 to ₹3,989.90 when last traded on Wednesday.