Cardamom loses aroma on Omicron fears, subdued call for by admin- Friday, December 24th, 2021 07:54:24 AM
Traders worry further drop in prices
Cardamom growers are preserving their fingers crossed within the wake of a fee drop and the looming hazard of Omicron that brought about subdued enquiries from upcountry markets.
Prices are actually soaring within the variety of ₹850-950 consistent with kg and the farming community is fearful of a similarly drop due to declining call for. Given the average production fee at ₹600-750 in line with kg, they said that the present day fee realisation within the auctions isn’t always possible.
The market fashion of charge is regarding for sellers as there may be a slow and constant decline inside the costs. The downward fashion is continuing amid massive arrivals because of correct rains this yr. In fact, the capacity of buying patterns has dropped, even though the call for has been strong in international markets, says M Dhanavanthan, a cardamom dealer and exporter in Bodinayakkanur, instructed BusinessLine.
Seasonal spike in prices such as the only seen at some stage in Diwali changed into also no longer visible this year and it’s miles a growing concern among planters and traders that this trend in fee drop might affect the market for the approaching season as well, he stated.
Traders in Vandanmedu stated there may be a liquidity crunch inside the market as they’re unable you got extra due to piling up inventory. But the subdued demand due to the difficult winter inside the North and the absence of ceremonies, marriages and features in the extreme climatic situations hit sales.
The public sale is witnessing heavy arrivals with the amount offered on a every day foundation within the range of a hundred and fifty tonnes in keeping with day. Farmers have also sought the intervention of the Spices Board to control the arrivals to the auctions to decrease similarly price drop.
However, C Sadasivasubramaniam, Secretary, Kerala Cardamom Growers Union, alleged that a majority of the presented quantities within the auctions are re-pooled stock with sellers, that is impacting the enterprise badly. Through the re-pooling system, he stated the auctioned bid can be delivered returned again for public sale. Thus, the full amount auctioned on a season may be much more than actual manufacturing. There has been appropriate production inside the modern yr due to rains and expanded place inside the growing areas, he brought.
According to Dhanavanthan, it is a promising scenario that the net public sale in a couple of places sees huge arrivals. In this example, the question remains as to how exporters can regain a foothold within the market and produce the rate again to a level wherein it’s miles useful for planters and buyers. Unless the quantity of arrivals comes down this case can not be managed as farmers or planters can not keep again their produce for a long time awaiting a charge rise.
Prices decrease than ₹1,000 will no longer help farmers. They also want to clean their inventory and prepare for the imminent season in 2022.