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G.K. Nair

Kochi , Oct. 20

DOWNWARD trend continued in cardamom market on heavy arrivals, despite good buying activities in the auction centres in Kerala and Tamil Nadu.

As the prices remained low, exporters and upcountry buyers were active. Last month, an estimated 70 tonnes of cardamom were exported, and this month also similar volume is expected to be shipped.

Three major exporting companies were buying substantial quantity, market sources told Business Line.

Drop in prices is attributed to increased arrivals and the good rains in the growing areas during the past two weeks. Diwali buying was about to come to an end and following this, the demand was likely to shrink, they said.

. Favourable weather conditions prevailing in the growing areas would result in improvement in production during January - February 2004, they said.

The current prices, according to small growers, are moderate as it fetches an average Rs 400 per Kg.

The prices of graded varieties fell from that of the previous week. AGEB was sold at Rs 515— Rs 525 per kg as against Rs 575— Rs 590 the previous week.

Prices of other grades were Rs 365— Rs 375 (Rs 375— Rs 385), AGS Rs 340— Rs 350 (Rs 355— Rs 365) and AGS 1 Rs 320— Rs 330 (Rs 330— Rs 340) per kg.

Total arrival during the current season stood at 1,200 tonnes compared with 852 tonnes in the same period last season. The total sales through auctions up to October 18 were 1,115 tonnes at the weighted average price of Rs 421.87 per kg. During the corresponding period last season, auction sales were at 791.1 tonnes at an average price of Rs 720.77 per kg.

New Auction Centre: A new auction centre for cardamom would become operational in Kozhikode from next week so as to market the cardamom produced in Wayanad district of Kerala, according to official sources. The Spices Board Chairman, Mr C.J. Jose, will inaugurate the centre to be operated by Green Agro Trade Links Private Ltd, on October 27, they said.

However, market observers told Business Line that the district produced around 300 tonnes of cardamom per season and hence the arrival in adequate quantity for sustaining the auction through out the season would be difficult.

On the other hand, they pointed out, as the traders were concentrated in Kerala's Idukki district and Bodinayakannur in Tamil Nadu dealer's participation in the auctions at Kozhikode would also become a problem.

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