The Hindu Business Line : Cardamom prices facing slump due to glut

CARDAMOM planters are worried over the sharp slump in prices. According to the officials of the Cardamom Planters Association (CPA) at Bodinaickanur, near here, the prices declined by Rs 30 over the previous two weeks.

At the auction centre in the town, high quality highbred variety has been auctioned at Rs 300 per kg and other varieties, at Rs 220 a kg as against Rs 400 and Rs 250, respectively, earlier. It is feared that the trend would worsen further, following Deepavali.

Cardamom is cultivated in about 35,000 hectares in Bodinaickanur, Thandigudi, Valparai, and some hilly pockets in Virudhunagar and Tirunelveli districts and Idukki and other parts in Kerala.

Poor buying capacity and huge arrivals in the market coupled with the decision of the upcountry buyers to procure on the basis of demand without resort to stocking, the inability of the local buyers to hold stocks and poor quality are attributed as factors causing the slump.

The President of CPA, Mr C. Rajagopal, observed that the release of subsidy of Rs 30 a kg by the Government to the exporters has not helped to improve the situation.

At the auction centre, where on an average 20,000 kg to 25,000 kg have been coming in, the arrivals are regulated, the sources added.

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