The Hindu Business Line : Cardamom up on short supply

Arrivals at the auction held by the Cardamom Processing and Marketing Company (CPMC) stood at 18 tonnes and as the traders were active, the prices went up by Rs 15 to Rs 20 a kg, Mr P.C. Punnoose, Managing Director, CPMC told Business Line. He said there was hardly any export buying. However, upcountry buyers were active. Medium bulk was sold at Rs 325 to Rs 330 a kg.

After a brief interval, arrivals included 72 kg of 8 mm bold, which fetched the maximum price of Rs 587 a kg, Mr Punnoose said.

Meanwhile, traders at Bodinayakannur said the market was steady on short supply. Some demand from upcountry was seen. According to them, traders in upcountry markets were holding good inventory. In Delhi alone, the stock is estimated at around 600 tonnes, they said.

According to Mr Punnoose, the arrivals are expected to shrink further in the coming weeks as the harvesting for the current season has ended.

Given the short supply situation and to settle the accounts of the transactions conducted during the season, the auctioneers are planning to suspend auction from June 1 to August 15, i.e., till the first crop of the next season arrives in the market.

The summer showers in recent days has been scattered, and as a result, some of the growing areas such as Vandamedu, Nedumkandam and Kumily have not received adequate rains, Mr Punnoose said. According to him, 25 per cent to 30 per cent of the plants have been destroyed in the recent dry spell, which might lead to an estimated 30 per cent to 40 per cent drop in the production next season.

Exports in March are estimated at 60 tonnes. In that case, the total export of cardamom during April - March 2003-04 would touch only 670 tonnes, i.e., 30 tonnes short of the target of 700 tonnes set for the last fiscal, official sources said.

Of the total arrivals of 4,664 tonnes, 4,299 tonnes were sold during the current season up to April 7 through auctions. The weighted average price was Rs 364.40 a kg. During the corresponding period previous season the arrivals stood at 3,622 tonnes from which 3,209 tonnes were sold and the average price was Rs 583.06 per kg.

Prices of graded varieties on April 10 were AGEB Rs 455 - Rs 465; AGB Rs 340 - Rs 350; AGS Rs 320 - Rs 330; and AGS 1 Rs 295 - Rs 305 a kg.