The arrival of large cardamom at the auctions was reported to be weaker than usual, and its prices increased marginally. On the contrary, its spot price remains under pressure. With the onset of winter, market sentiment may get affected. Large cardamom is likely to stay strong in the coming days.
Low Arrivals-Price Rise
The second crop of large cardamom is underway in central-producing states. Due to comparatively low arrivals, its average auction price has recently seen a slight rise in the auctions, but this rise is not showing any impact on the spot price.
Although this time in Assam, discussions are also going on about heavy loss to the second crop. If these discussions are to be believed, then only half the yield of large cardamom will come in Assam this season. There are also reports of damage to crops in Bhutan and Sikkim. However, following the recent recession, farmers have limited sales of their large cardamom crop for some time now.
Future Scenario
This time the weather in the region has remained more or less favourable, and the first crop of large cardamom has been good, contrary to the earlier estimates.
The first large cardamom crop in the country was much weaker than usual during the last season due to adverse weather conditions. The critical fact is that after the first crop, its main crop, i.e. the second crop, also came less than usual by about 35-40 percent. This is the reason why the auction of large cardamom could not be held regularly in the last season.
Thus, experts believe that the market sentiment may be affected due to winter weather, the large cardamom may remain strong in a spot in the coming days due to low stocks, and there may be a rise in domestic demand in January.