The Hindu Business Line : Cardamom prices continue to fall on low buying

The arrivals at the auctions have been good but around 50 per cent of it was carry-over stock. There is a sentiment in the market that planters are holding huge stocks. Hence, the prices could fall further while liquidating old stock.

However, auctioneers said the carry-over stock would be exhausted in a couple of weeks.

The arrivals during the week at the auctions in Vandanmedu, Kumily and Bodinayakannur stood at 115 tonnes. Almost the entire quantity has been sold, but at low prices, Mr P. C. Punnoose, General Manager, Kerala Cardamom Marketing and Processing Company told Business Line. He said arrivals of 8mm bold were negligible. 7mm bold was sold at Rs 350 a kg, while those below 7mm were sold between Rs 320 and Rs 325. Bulk was sold at Rs 310-Rs 320.

Exporters were not active at the auction, Mr Punnoose said.

Traders in Bodinayakannur said major dealers were holding substantial stocks of Guatemalan cardamom, which was mixed with Indian cardamom and then sold. Even in Bodinayakannur, 25 to 30 tonnes of Guatemalan cardamom is held by traders, they said. As the dealers are liquidating this stock of imported capsules, they are not active in the auctions, traders said.

Meanwhile, major planters have alleged that the low prices quoted in the futures trading by some exchanges in the country were responsible for the continuous fall in the prices at the auctions.

However, the planters said that as the festival season is to begin in north India, demand could improve in the coming weeks.

Harvesting in Guatemala will begin only by November, while the festival demand will come up much before the harvesting, sources pointed out.

Total arrivals as on September 13 stood at 441 tonnes, of which 415 tonnes were sold, while 428 tonnes were sold from the total arrival of 454 tonnes in the last season up to September 13.

The weighted average price this season fell to Rs 343.71 a kg from Rs 391.11 in the last season.

The prices of graded varieties on September 11 were: AGEB Rs 395-Rs 405, AGB Rs 315-Rs 325, AGS Rs 300-Rs 310, AGS 1 Rs 270-Rs 280 a kg.