Cardamom prices fell sharply last week on heavy arrivals from the early new crop outstripping the demand at auctions held in Kerala and Tamil Nadu. Weekly arrivals have soared to around 400 tonnes because of the early good crop and that has happened during the usual peak period of the season.

It has negatively affected the market sentiments in the country, market sources said. As against 86.5 tonnes of cardamom arrivals during the first week (August 1-7) of the last season (officially the season begins from Aug 1) it was at 405.16 tonnes in the same period in the current season.

Such heavy arrivals at the usual lean period of the season have created bearish sentiments in the market. Buyers slowed down buying from the declining market. To make the situation worse, some were allegedly sending SMS messages to north Indian buyers asking them to hold back their purchases claiming that the average price would fall to Rs 450 a kg, market sources told.

Export buying has slowed down as the major overseas buyers have stocked enough quantity for the Ramadan month, which is already under way, they said. Total arrivals during the current season up to August 7 stood at 405.1 tonnes against 86.5 tonnes in the same period the previous season.