Indian dealers bullish on cardamom
INDIAN cardamom dealers have found that the quantity of new crop arrivals is reducing, underlining the fact that the country is facing a smaller crop this year.
In a December 17 market update Emperor Akbar Green Cardamoms noted that the third round of picking was now under way in most of the plantations. “The second round of picking saw lesser quantity arrivals than in the previous years. As such, we see that the total quantity of arrivals is reducing,” it added.
The company recalled that prices had generally increased over those of last month and predicted that they were poised for a further rise in the coming month. “The trends in the auctions indicate that the price difference between the bold grades and the medium grades is increasing in proportion with the reduction in arrivals of the bold grades,” it noted.
Planters were convinced that the crop quantity this year would not be more than 15,000 tonnes. “Besides, delay in rainfall in the beginning of the year and the disruption in trade due to disputes in the auction system has encouraged planters to hold back stocks selectively in hope of higher prices in the coming months. We see that many planters are holding back the stocks at the plantations itself on these hopes,” it added.
Emperor Akbar observed that there had been a lot of purchases in the last few days by speculators and stockists. The local festival and wedding demand continued and gave strong support to prices along with regular demand from exporters for the bold grades.
“Although Guatemalan new crop cardamom stocks have reached major markets of the Middle East, we still find buyers for Indian cardamom based on their preference for superior quality. All this indicates a strong upward pressure on the prices building up,” the company claimed.