The domestic cardamom market is gripped by a bearish trend, with traders on a hectic selling spree at the auctions. | |
| Although the prices have edged up in the range of Rs 270 to Rs 280 a kg in recent times from Rs 230 a few weeks ago, a marginal drop in output "� contrary to the estimates of a sharp fall "� has left the market bearish. |
| |
| During the last week of October, the average prices had been hovering around Rs 310-320 on account of an anticipated steep fall in the total output. |
| |
| It was forecast that the harvest in the current season would be down by 40 per cent over the last year's production, following untimely rains. |
| |
| But, later estimation pegged the quantum of drop to only 10 per cent, with rains in October and November improving the crop. |
| |
| A daily average supply of 60 tonne to auction centres only proves that damage to the crop is minimal. The KCPMC in Kumily recorded an inflow of 85 tonne on Wednesday. |
| |
| However, local traders here blamed a cartel rather than the fundamentals for the bearish market. |
| |
| They alleged that a highly volatile cardamom market is controlled by a group of big dealers, who are fixing prices and marginalising growers. |
| |
| They also criticised the passive approach of the Spice Board, which, they claimed, is not taking the price manipulation seriously. Jose Valy, a grower here, said the market is controlled by a cartel of large dealers and the current prices do not reflect the supply-demand conditions. |
| |
| Reflecting the price movements at the auctions, the futures contracts have also become volatile. The January, February and March contracts for 7 mm grade are all quoting above Rs 400 a kg on the MCX. |
| |
|
| |
