Cardamom auctions cancelled for second day

KOCHI: Small cardamom auctions were cancelled for the second consecutive day in Idukki on Tuesday as buyers found it difficult to raise cash for the buy. As a result, cardamom prices dropped by 10% to Rs . 1,200 per kg. This happened at a time when arrivals were in full swing. Daily arrivals range from 70 to 80 tonnes a day.

“At current prices, a buyer who is buying a tonne of the commodity may require over Rs . 12 lakh which he is unable to raise due to restrictions,'' said TC Mathew, secretary of Cardamom Growers Association. Last week too, auctions were cancelled for a day after the announcement of demonetisation. “We do not know whether auctions will take place in the coming days,'' said PC Punnoose, general manager of Kerala Cardamom Processing and Marketing Cooperative Society.

Cardamom production is estimated to be one-third of the output of 30,000 tonnes last year. As a result, prices escalated to over Rs. 1,000 per kg after several years. In the event of further cancellation of auctions, prices could drop again, say traders.