The Hindu Business Line : Cardamom rises on short supply

``Market is tight due to the drought. Bulk prices were up at Rs 400-450 per kg from Rs 300-350 per kg,'' trading sources in Bodinayakannur told Business Line on Monday.

According to market sources in Kumily, most of the arrivals consisted of old stock. Supply of bold varieties, especially 8mm new crop was very thin. This has pushed prices of this variety to Rs 770 per kg. Prices of new 6.5-7 mm varieties also moved up to Rs 650-700 per kg, they said.

Prices of graded varieties were AGEB Rs 605-615 (Rs 550-560 last week), AGB Rs 405-415 (Rs 375-385), AGS Rs 380-390 (Rs 350-360) and AGS 1 Rs 345-355 (Rs 315-325) per kg.

Export enquiries were there from the Gulf countries and Japan and hence about four exporters were active in the market. It is expected that 70-100 tonnes would be exported before October 15.

At the same time, there has been normal demand from the upcountry markets also, because of the forthcoming festivals. Ramzan season would also begin early this year. As the harvesting in Guatemala is expected to begin by mid-October, cardamom arrivals from this source in the Gulf, West Asia and Japanese markets would take place only by mid-November, market sources pointed out. This situation would enhance the chances for exporting of Indian cardamom to these overseas markets, they said. Production of cardamom in Guatemala is estimated at 22,000 tonnes this year.

But, the drought conditions prevailing in the cardamom growing areas in Kerala's Idukki district, if prolonged would squeeze the Indian production leading to short supply and a consequent rise in prices, at least till the Guatemalan produce arrives in the Indian market through various smuggling channels, the sources claimed. However, any sharp rise in prices here would have a negative impact on the exports, they added.

Total sales through auctions during the current season up to September 28 stood at 696.30 tonnes at the weighted average (WA) price of Rs 416.67. During the corresponding period last season, it was 438 tonnes at the WA price of Rs 753.01 per kg.

Auctions were held during the lean period also this year unlike last year and hence the increase in the sales this season.

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