The Hindu Business Line : Weak demand keeps cardamom low

CARDAMOM prices continue to rule at lower levels on weak demand, though they tended a increase a tad on Wednesday. The rise was on account of buying by exporters at auctions in Kerala and Tamil Nadu. In general, prices continue to remain flat on weak demand.

Upcountry buyers are inactive despite the low prices. According to trading sources in Bodinayakannur, traders in the north Indian markets are holding adequate inventories. In Delhi alone, traders held about 500 tonnes, they said.

On the other hand, delayed payments have weakened the traders there and in Kerala's Idukki district. In Bodi, 7 mm bold is available at Rs 400, while that below 6.5 mm is at Rs 255 - 260 per kg; 6.5 mm to 7 mm at Rs 280 to Rs 290 per kg.

However, at Kumuly (Kerala) auction on Wednesday, arrivals stood at 31 tonnes. This included about one tonne of 8 mm bold and 6 - 7 tonnes of 7 mm bold. The 8 mm bold variety fetched Rs 550 per kg, while 7 mm Rs 450. Bulk was sold at Rs 330 to Rs 335. Exporters were active and bought about 12 tonnes, trading sources in Kumily said.

The market has been witnessing a downward trend except on Wednesday, Mr P.C. Punnose, General Manager, Cardamom Processing and Marketing Company Ltd (CPMC), a major auctioneer, told Business Line on Thursday. Arrivals have declined and there is no selling pressure due to low prices, he said. According to him, medium planters with low overhead expenses are holding their produce anticipating higher prices.

The production during the current season, he said, could be estimated at around 10,000 tonnes in Kerala. The total arrivals at the auctions centres in Kerala and Tamil Nadu stood at over 4,000 tonnes, while the direct sales could be around 3,000 tonnes. Growers were holding another 2,500 tonnes to 3,000 tonnes, he said.

According to official sources, the arrivals during the current season up to February 2004 stood at 4,069 tonnes of which 3,735 tonnes were sold. The weighted average price was Rs 369.75 per kg. Prices of the graded varieties on February 21were AGEB Rs 420 - Rs 430, AGB Rs 315 - Rs 325, AGS Rs 300 - Rs 310 and AGS 1 Rs 280 - Rs 290 per kg.