The Hindu Business Line : Cardamom prices remain flat on lack of buying support

Normally during this month, north Indian buyers buy aggressively. But so far they have not shown any interest. The main reason attributed to this phenomenon is the arrival of carryover stock of the last crop, which is of inferior quality. About 40 to 50 per cent of the arrivals consisted of capsules of last season's crop, market sources in Kumily and Bodinayakanur told Business Line.

As a result the prices remained at below remunerative level, which according to growers, should be at a minimum of Rs 400 a kg. The weighted average price during the current season from August 6 to September 9 fell to Rs 352.74 a kg from Rs 379.38 a kg in the same period last season, they said.

The total exports of cardamom from the country in August are estimated at 25 tonnes. This month it is expected to be above 50 tonnes, they claimed.

During this period 307 tonnes were sold from the total arrival of 329 tonnes. Whereas, the arrivals in the corresponding period last year were 401 tonnes from which 380 tonnes were sold.

Prices of graded varieties were AGEB Rs 415 - Rs 425, AGB Rs 320 - Rs 330, AGS Rs 295 - Rs 305 and AGS1 Rs 275 - Rs 285 a kg. The prices dropped by around Rs 50 a kg from that of the auction held by the Cardamom Processing and Marketing Company (CPMC) Kumily on August 19.

At the CPMC auction on Wednesday the total arrivals stood at 30 tonnes and the entire quantity was sold out. Only 60 per cent of the arrivals were from the new crop. 7mm bold was sold at Rs 400 - Rs 410 a kg while 8mm fetched Rs 520 - Rs 540 a kg. Bulk was sold at Rs 350 - Rs 360 a kg. The average price was Rs 360 a kg, Mr P.C. Punnoose, General Manager, CPMC, said. According to him because of the continuous arrival of the old stock the North Indian buyers are confused.

To explore the possibility of increasing the exports by KCPMC, the company was sending a trade delegation to Saudi Arabia, Kuwait and Dubai next month, he said.

The erratic weather conditions prevailing in the main cardamom-growing belt in the Idukki district have become a cause for concern. According to growers for the past 15 days there hasn't been any showers in the area and it is experiencing a dry spell. Whereas, it is raining in areas around this belt. They fear that if the dry spell continued that would adversely affect the crop. Already, the production is estimated to decline by 20- 25 per cent this season due to unprecedented drought in the growing areas, they said.