Cardamom traders in a fix over output blip

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.