The Hindu Business Line : Marginal increase in cardamom prices

CARDAMOM prices have shown marginal improvement after a continuous fall ever since the beginning of the current season at the auctions held in Tamil Nadu and Kerala this week but still remained at lower levels.

The weighted average price stood at Rs 329.09 a kg compared to Rs 417.09 during the same period last year.Arrivals have been heavy during the current season without a corresponding increase in demand. The total arrivals up to September 29 stood at 773 tonnes, of which 728 tonnes were sold. ( 704 tonnes were sold from 743 tonnes during last season).

Low prices in all grades had pushed down the average price this season, market sources said.

Buying support from upcountry buyers and exporters was not to the levels expected despite the ensuing festival season, they said. Only, a marginal increase in demand in recent days had helped the prices to move slightly up, they said.

Total export during September is estimated at around 50 tonnes. Prices of graded varieties as on September 25 are AGEB Rs 385-395; AGB Rs 300-310; AGS Rs 280-290 and AGS1 Rs 260-270 a kg.

Availability of cardamom imported from Guatemala last year and early this year in the domestic market had its negative impact on the demand position, trading sources in Bodinayakannur told Business Line.

They said that the traders in the upcountry market were liquidating this stock now. A similar situation existed in the overseas markets, especially in the Gulf, the traditional market for Indian cardamom, they said.

The timely arrival of southwest monsoon has improved the crop in the growing areas, which were not hit by the severe drought in the summer this year. This has led to a good crop in these areas.

However, the dry spell in these areas in recent weeks has become a cause for concern. The sources said that the current prices were far below the remunerative level. "If the prevailing price trend continued, we will land up in serious financial crisis," they said.