The Hindu Business Line : Cardamom auctions suspended as prices continue to decline

The prices have been declining since the last fortnight and as a result, the Cardamom Processing and Marketing Company (CPMC), Kumily has suspended auction slated for February 18. Similarly, there were no auctions on Tuesday Pulianmala in Idukki district.

Decline in arrivals in recent days is also pointed out as the reason for suspending the auction.

Meanwhile, prices declined in auctions at major centres in Kerala and Tamil Nadu last week.

Buying activity was poor due to lack of resale, which resulted in liquidity problems with the traders, according to market sources at Kumily and Bodinayakannur.

Dry spell in recent weeks in the growing areas both in Idukki and Wayanad districts has brought an early end to the harvesting in plantations having no irrigation facilities.

The continuous spell without summer showers in the region could delay the next crop too.

If the prevailing conditions continue, the market sentiments might change, pushing the prices up in the coming weeks, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

Bulk cardamom fetched Rs 300-310 per kg and consisted of inferior quality capsules, trading sources said.

Graded varieties were not coming at all in the market in recent days, they added. Some of the exporters and north Indian buyers were buying the bulk, they said.

The prices of graded varieties were AGEB Rs 450-460, AGB Rs 350-360, AGS Rs 320-330 and AGS 1 Rs 310-320 per kg.

Total arrivals during the current season up to Feb 16, stood at 3,950 tonnes and of which 3,623 tonnes were sold at the weighted average price of Rs 371.18 per kg.

During the corresponding period last year, arrivals were at 3,088 tonnes and sales at 2,733 tonnes. The weighted average price was Rs 594.87 crore.