The second round of picking in India’s new crop of cardamom has begun.
In a September 4 market report, Hemen Ruparel of Samex Agency, which markets under the brand Emperor Akbar Green Cardamoms, wrote: “We are in the peak season just now with about 650 tonnes of arrivals every week. The weather has turned warmer in the past few days though very humid. There is a forecast for further rainfall in the coming days which is a good sign for the cardamom plantations.”
Ruparel explained that the arrivals consist mainly of the smaller grades with only about 27-28% being of the bolder grades. The planters are also withholding the stocks of the bold grades in view of the very low prices.
“Internationally, all the major consuming centres reported above normal and high levels of inventory coupled with poor sales in the month of Ramadan. There is inventory pile up in the international channel at prices higher than the current levels. Traders are looking to sell these stocks quickly in anticipation of the new Guatemalan crop in the coming month,” he added.
The domestic festival demand has started now. “We are also seeing good buying interest from speculators, stockists besides the traders in the commodity exchange,” Ruparel noted.
All these sources indicate that the markets believe that the prices are at the rock bottom levels and are poised for a turn around. With the Indian rupee weakening against the dollar, Indian exports become cheaper. “This would make Indian exports more attractive and we could see exports surpassing the level of 4,500 tonnes exported last year,” Ruparel predicted.
Demand from non-traditional industries continues to grow at a fast pace. “We are seeing demand coming from new markets as consumers find the prices cheap and realise the difference in the quality,” the report revealed.
Samex Agency feels that the prices are now headed for a rebound after a consistent fall in the past few weeks. “This will be a good opportunity for investors and traders to buy at the lower levels,” Ruparel suggested.
The company is advising buyers to cover their maximum requirements for the next couple of months.