The high price for export quality 7 to 8 mm Indian cardamom has hardly finds any takers in the ongoing Gulf Food Expo in Dubai.  

According to traders, major overseas buyers are behind Guatemalan crop, a similar variety which is priced at $40-42 whereas Indian cardamom rates are hovering in the range of $50 to 52. This has resulted in a subdued demand for Indian variety in the current food expo in the gulf.

“Obviously when the price goes beyond a limit, overseas buyers always refrain from procurement of cardamom. Though the Guatemalan crop is no match for Indian cardamom, the low price of the commodity is its USP”, a leading exporter said. The higher price of Indian cardamom price is because of a decline in production by about 40 per cent in this season, the exporter said.

Traders pointed out that there has been weak buyer support in the auction market where the demand was very low, despite adequate supply. Even the higher rates are keeping away many buyers from the market, which is witnessing a slower movement. The prices are two to three times higher in the crop season and there was no genuine demand happening in the consuming centres in North India. High priced inventory is also forcing buyers to stay away from the market.  

In this emerging situation, according to traders, the market on Thursday is likely to be stable as the total quantity arrived for auction in Puttady was 49 tonnes. In the morning session, the auctioneers SpiceMore Trading Company offered 30 tonnes, while the offer made by Sungandhagiri Spices Promoters and Traders was 19 tonnes.  

Trade analysts Acumen Capital Market said that cardamom March futures fell by 0.33 per cent or Rs 10.5 to Rs 3130 when closed on Wednesday.

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