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"There is good export buying because of the forthcoming Ramzan season".

Kochi , Oct. 7

CARDAMOM prices dropped by Rs 30 to Rs 40 per kg on selling pressure at auctions held in Kerala and Tamil Nadu during the last week compared to the previous week.

Prices, which had gone up by Rs 70 to Rs 80 per kg in the previous week have fallen despite increased buying activities due to over supply. Prices of medium bulk fell to Rs 350-Rs 400 from Rs 400-Rs 450, while floating to Rs 400-Rs 480 per kg at Bodinayakannur in Tamil Nadu on Monday. Bold 8mm capsules fetched Rs 740-Rs 750 per kg against Rs 750-Rs 800 the previous week while 6.5 mm bold was being sold at Rs 500 - Rs 520 per kg.

Prices of the graded varieties were: AGEB Rs 590 - Rs 600 against Rs 605 - Rs 615 per kg; AGB Rs 405 - Rs 415; AGS Rs 380 - Rs 390 and AGS 1 Rs 350 - Rs 360 per kg.

Attributing the decline to selling pressure the market sources told Business Line that there was also good demand both from the North as well as exporters. "There is good export buying because of the forthcoming Ramzan season".

According to them, exporters are holding confirmed orders and as such the exports during the current month are estimated at around 60 tonnes. Because of the ensuing Diwali season, there is demand from the upcountry markets also. The current downward trend is a temporary phenomenon and the demand is expected to go up further as the festival season draws near. The advance of the festival season this year much before the harvesting of cardamom in Guatemala has also placed Indian cardamom at an advantageous position.

However, some of the traders said that liquidity problem following the introduction of "cash-and-carry" system by the auctioneers was affecting their buying activities.

According to market sources in Kumily, there were good arrivals though 50 per cent of it was old stock. "As the growing areas have started getting rains during the past few days there has been some improvement in the arrival of bold varieties, especially 8mm new crop. This has pushed the prices down," they said.

If the weather conditions improved with more rains in the coming days, there would be improvement in the crop leading to increased arrivals, they added.

During the current season up to October 5, the sales through auctions stood at 857 tonnes at the weighted average price of Rs 424.24 per kg from the total arrivals of 912 tonnes. During the corresponding period last season, out of the total arrival of 617 tonnes, 575 tonnes were sold at the average price of Rs 745 per kg.

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