The Hindu Business Line : Uptrend in cardamom prices on buying support

CARDAMOM prices increased by Rs 40 to Rs 52 per kg at the first auction of the current season, starting August, held at the Kerala Cardamom Processing and Marketing Company Ltd (KCPMC) here on Thursday.

A record number of 80 traders, took part in the auction and 26.37 tonnes of cardamom arrived were sold out. The average increased to Rs 392 per kg against Rs 340 per kg at the last auction held by KCPMC in mid-June. The 8mm bold fetched Rs 580 - Rs 600 per kg, while 7 mm Rs 440 to Rs 450 per kg.

The Mysore bulk (old variety) depending on its colour was sold at Rs 340 - Rs 370 per kg, the price of the green bold bulk (new varieties such as Jnallani) ranged between Rs 370 and Rs 420 per kg, Mr P.C. Punnoose, General Manager, KCPMC, told Business Line.

The prices are expected to rise this season on decline in production by 15-20 per cent from the last year's level of 11,000 tonnes. Besides, low inventory with the farmers as well as the dealers and the lifting of ban on gutkha manufacturing by the Supreme Court recently could buoy the prices, said Mr Jojo George, Managing Director, KCPMC.

According to him, there has been a consistent demand for cardamom in the domestic market with an annual growth of 10 per cent and, in fact, the internal market absorbed what was produced in the country. Unlike in other producing countries, here cardamom is processed scientifically and graded depending on its size such as Alleppey Green Extra Bold (AGEB) which is 7mm and above, AGB - 6mm and above, AG Superior (AGS) 5mm and above, AG Shipment green 1 (AGS 1) 4mm and above. Of these, AGB goes mainly to Saudi Arabia and West Asia, while AGS (col), AGS (sick) and AGS 1 col and AGS 1(sick) is exported to Japan. Saudi Arabia and West Asia buy for consumer retailing in consumer packs, while to Japan, it goes in bulk packing of 50 kg for grinding purposes for using in masala mixtures and bakery, Mr George said.

The superior grade of Indian cardamom enjoys a premium position in the Gulf and West Asian markets because of its good flavour and aroma, he said.

The southwest monsoon showers this year has placed the cardamom growers in an advantageous position, said Mr T.K.S. Manoharan, a Cumbum-based planter. According to him, it would be remunerative if they could get an average price of Rs 450 a kg.

The total area under cardamom (yielding) in the country is estimated at 52,000 ha, with 34,000 ha in Kerala and 18,000 spread over Tamil Nadu and Karnataka, said Mr T. Asokkumar another Cumbum-based grower and President Kerala Cardamom Growers Union.