The Hindu Business Line : Cardamom up on buying

Prices moved up Rs 15-Rs 20 a kg at Kumily (Kerala) auction on Wednesday raising the average price to Rs 380 a kg. Medium bulk was sold at Rs 340 as against Rs 325 last week, Mr P.C. Punnose, General Manager, Cardamom Processing and Marketing Company (CPMC), Kumily, told Business Line.

Traders were all active, probably because of the sentiment that the change in Central Government might bring in changes in the Exim policy, he said.

Arrivals at Kumily auction on Wednesday stood at 27 tonnes and the entire quantity was sold with 8mm bold being sold at Rs 550-Rs 580 a kg while 7mm bold at Rs 450, he said.

Thin arrivals said to have forced two auctioneers, KCPMC at Bodinayakannur in Tamil Nadu and ICMC Pulianmala in Kerala to stop auctions, while STCL in Bodinayakannur to conduct auctions once in a fortnight.

However, three major auctioneers MAS, CMC and CPMC all in Kerala might conduct auctions throughout. But, they had indicated that the auctions might be suspended for two months to settle the accounts

Arrivals at the auctions during the current season up stood at 5,083 tonnes and of this 4,704 tonnes were sold and the weighted average price was Rs 362.72 a kg. During the same period last season, out of the total arrivals of 4,118 tonnes, 3,686 tonnes were sold. The weighted average price was Rs 570.30 a kg.

According to official sources the prices of graded varieties as on May 8 were AGEB Rs 460-Rs 465 a kg, AGB Rs 340-Rs 345, AGS Rs 320-Rs 325 and AGS1 Rs 300-Rs 305, which had gone up by Rs 10-Rs 15 a kg in the subsequent days.

The growing areas had received sufficient rains in recent days and that would result in vigorous growth of the cardamom plants, which had withstood the severe drought. However, new planting is needed in areas where 25 per cent of the plants had dried up during the dry spell.

This might result in a drop of 25-30 per cent in production next season, Mr Punnoose added.