Cardamom prices fall on weak buying

KOCHI: The cardamom prices suffered a setback during the week with prices dropping by around Rs 20 per kg. The average price at Wednesday auctions was Rs 352 per kg as compared to Rs 377 per kg in the previous week.

The market sources attributed the fall to lower purchase by exporters early during the week. But the exporters increased their offtake on Wednesday. In the last two or three weeks, the exporters have been active in the market to meet the demand from Saudi Arabia, which has started to buy more from India as the production in Guatemala is down.

The arrivals stood at 65 kg during the Wednesday auctions. Despite reports of lower production, the arrivals have not dwindled. The market sources feel, the growers are releasing their accumulated stock in the market.

The absence of summer rains is worrying the growers. Usually, the crop gets one or two rains in the summer months, which is good for the cardamom crop. With reports of drought ahead, the production for the coming year may also be short, it is pointed out, which could push up the prices.

The March futures prices at MCX which had gone over Rs 500 per kg mark last week has dropped to a level of Rs 475 per kg.