The Hindu Business Line : Cardamom prices firm

Apprehension of crop failure next season because of the prevailing drought in the growing areas appears to have prompted the traders to buy and stock, market sources told Business Line.

According to them, traders, growers and dealers are holding stock to meet the demand that could come up in the early next season. If the dry spell continues without any summer showers and till the southwest monsoon in June, the next crop would be badly affected, they said. Even the current drought conditions would delay the next crop, which normally arrives in the market in August, they said.

This phenomenon has raised the prices, which were on the downward swing in the previous weeks, by Rs 40 to 50 per kg. Arrivals at the auction of Cardamom Processing and Marketing Company (CPMC) on Wednesday at Kumily in Kerala stood at 21 tonnes and of this, 20 tonnes were sold. The medium bulk was on offer at Rs 300 to 305 a kg. Bold varieties such as 8 mm were absent; 7 mm bold was sold at Rs 410 - Rs 421 a kg.

Given the unfavourable weather conditions the market was likely to improve in the coming months, Mr P.C. Punnoose, General Manager, CPMC, Kumily said.Exporters were also seen active last week.

Total arrivals up to March 22 stood at 4,470 tonnes of which 4,117 tonnes were sold. The weighted average price was Rs 365.69 per kg.

The prices of graded varieties per kg were AGEB Rs 450- Rs 460, AGB Rs 330 - Rs 340, AGS Rs 315 - Rs 325 and AGS 1 Rs 300-Rs 310.