The Hindu Business Line : Cardamom slides on weak demand

Bulk was sold at Rs 330-340 per kg on Monday at Kumily, which is Rs 30 less than that of the last weekend price, trading sources said. Prices of graded varieties were AGEB Rs 450-470, AGB Rs 325-350, AGS Rs 310-320 and AGS 1 Rs 310-320 per kg.

Auctioneers have decided to suspend the auctions on account of the Pongal festival from January 13-20. Weak demand is also, however, pointed out as the reason for the suspension of the auctions. Traders anticipate that the prices would move up after the festival. They hope that there would be more demand from the upcountry markets, as the marriage season in North India would begin after January 15. The Pongal buying was also over now, they said.

"Export buying is there but not much," they said. During November, 100 tonnes were exported and, with this, total exports in April-November 2003, stood at 360 tonnes. The unit value realised in November was Rs 480 per kg, while the average unit value during April-November was Rs 506.81 per kg.

Arrivals at the auctions centres were good with some of the operators starting to re-sell their stocks, the sources pointed out.

Introduction of the cash and carry system by the auctioneers had significantly brought down speculationand hoarding this year, and had also been responsible for price stability though with marginal fluctuations, Mr P.C. Punnoose, General Manager, Cardamom Processing Marketing Company Ltd, Kumily, told Business Line. During the current season up to January 10, the arrivals stood at 3,293 tonnes and of this 3,009 tonnes were sold. The weighted average price was Rs 377.69 per kg. As against this, the arrivals during the corresponding period last year were 2,446 tonnes and the sales 2,178 tonnes. Weighted average price was Rs 603.80 per kg, market sources said.