India sees strong local demand for cardamom after resumption of auctions
INDIA’S cardamom auctions have resumed in full swing as traders and planters have settled for a ‘tick’ price of Rs2 ($0.03), Emperor Akbar Green Cardamoms said in a report released today.
“The disruption of the trade for over a month has raised serious questions on the organisation of the cardamom industry in India. Local issues have been holding up the trade and this is not a good sign for the growth of this industry,” the company stated.
Arrivals were now expected to increase as planters and auctioneers gained confidence in the participation of the traders. With the Diwali festival next week the local demand was very high. “However, it may be too late to cater to the north India demand as processing and dispatches may take time. Besides, holidays in the major markets from next week will still delay the supplies,” the company added.
Export demand from the Middle East had resumed mainly for the bold grades of 7mm and higher grades. Further, business from Europe had also been seen in the markets. However, it was still unlikely that exports would be anywhere near the same level as last year.
Recent rains in the plantations had helped the crop and the soil had regained its moisture levels. “This will be good for the remaining crop and the next one,” Emperor Akbar remarked.
The company claimed that prices, especially in the bold grades, were strongly competitive to Guatemalan cardamom on a grade to grade comparison. “Besides exporters, we expect the prices to be well supported by entry of stockists even after the festive demand is over. Overall, the probability of price increase is high especially in the bold grades,” it added.
Emperor Akbar also suggested that Thursday’s earthquake in Guatemala was unlikely to have a significant impact on the country’s cardamom crop and should also not have a major influence on the global cardamom industry.
However, it noted that shipments from Guatemala could be delayed by a few days depending on the extent of harm to the port facilities.