The Hindu Business Line : Cardamom prices up on short supply

As the season has ended, one auctioneer, MAS Enterprises, is holding auctions every week at Vandanmedu in Kerala while at Bodinayakannur in Tamil Nadu, the State Trade Corporation Ltd holds it once in a fortnight. Due to thin arrivals, MAS had also held its auction on July 26 in Tamil Nadu .

The arrivals at the auction were 8.5 tonnes while at the STCL auction last week it was 2.5 tonnes. A few lots of new crop also arrived at the STCL auction, trading sources told Business Line.

There was not much buying activity as majority of the buyers are waiting for the new crop to come.

In the absence of sufficient arrivals, other auctioneers have suspended auctions till mid-August.

As the quality of the capsules arriving at the auctions is inferior, exporters have almost stopped buying.

Exports, however, during the month is estimated at around 30 tonnes, they said.

During the current season up to July 23, the arrivals stood at 5,774 tonnes and of which 5,362 tonnes were sold and the weighted average price was Rs 361.13 a kg. In the corresponding period last season, the arrivals were 4,486 tonnes while the sales were 4,032 tonnes. The weighted average price last season stood at Rs 559.35 a kg.

The prices of graded varieties at the latest auction were AGEB Rs 455-460, AGB Rs 335-345, AGS Rs 305-310 and AGS 1 Rs 285-290 a kg.

The favourable weather conditions prevailing in the growing areas predict of a better crop from the existing plantations next season, they said. However, the loss of plants in areas severely hit by the drought during summer is likely to reduce the overall production, planters said. An estimated 25 per cent of the plants were destroyed, they said.

Anticipating a better price, the growers are engaged in good farm management practices. Major planters hoping to fetch a higher price are reported to be holding a substantial quantity of good cardamom.