Amidst the recent upward trajectory witnessed in the small-big cardamom and turmeric markets, a temporary slowdown has ensued due to profit-booking selling. This slight dip is merely a momentary pause before the market regains momentum. According to market analyzers, despite this short-lived decline, there’s no need for alarm, given the inherent scarcity of these grocery commodities. While the small cardamom market is experiencing a brief slowdown, with business people withdrawing their goods previously sold on credit, a rebound is on the horizon. Auction centres serve as the platform for these transactions. The anticipated two-day slow phase will pave the way for a momentous price surge.
Arrivals of these commodities have observed a relative decrease, while the productive areas have yet to be inundated with substantial goods. This market correction, instigated by speculators, will gradually give way to an upward movement. The large cardamom production across various regions, including Gangtok, Siliguri, Bhutan, and Nepal, has dwindled. This and India’s dependence on imports from neighboring countries contributes to price volatility.
This year, turmeric’s production needs to catch up with consumption. While the nation requires, consumes, and exports approximately 15 million sacks of turmeric, production has merely reached around 5.5-5.6 million bags. The market, characterized by significant speculator involvement and a surge in the last two months, holds promise. Despite the recent slowdown in arrivals across Erode, Warangal, Duggirala, and Cuddapah, the impending market dynamics are shifting.
Challenges stemming from fluctuations in the futures market have cast a shadow of uncertainty on the current spot markets. As the future unfolds, the market is projected to stand firm, reaffirming its resilience.