The Hindu Business Line : Cardamom declines on sluggish demand

Upcountry traders and the exporters were inactive. One of the reasons, attributed by the trading sources in Kumily in Kerala and Bodinayakannur in Tamil Nadu, for the change in market sentiment was the propaganda on arrivals of cardamom from Guatemala into the domestic market.

Besides, stockists in north Indian markets, who had bought good quantity of cardamom when prices were ruling at around Rs 250 a kg in Oct/Nov last, are now releasing the stock following rise in prices in recent weeks.

Market sources alleged that Guatemalan cardamom was available at Rs 250 a kg and it was being mixed with the Indian cardamom and sold in the domestic markets.

As a result, the prices dropped by Rs 10-25 a kg at the auctions. Arrivals also declined.

At the Kumily auction on Wednesday, 25 tonnes of cardamom was brought. The bulk was sold at Rs 300-350 a kg. The average price on Wednesday stood at Rs 351 a kg.

Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company, Kumily, told Business Line that the current declining trend was a temporary.

Exporters were also inactive despite the availability of airfreight assistance of Rs 45 a kg. In fact, the export of cardamom (small) during Apr-Dec stood at 375 tonnes (valued at Rs 14.46 crore) as against 490 tonnes (Rs 24.12 crore) in the same period last fiscal.

The average unit value realisation this year was Rs 385.60 a kg compared with Rs 492.24 a kg during Apr-Dec 2003-04. The airfreight assistance was made available from October 16, 2004.

However, ever since the Board has announced the airfreight assistance, the total export buying would be around 300 tonnes, claimed Mr S. Kannan, Director (Marketing), Spices Board.

The Board is optimistic that the cardamom exports during the current fiscal to be around 1,000 tonnes as against the target of 750 tonnes.

Total arrivals during the current season up to January 10 stood at 3,207 tonnes, of which 3,004 tonnes were sold. Last season, from the total arrivals of 3,255 tonnes, 2,976 tonnes were sold. The weighted average price was 303.64 a kg as against Rs 378.58 a kg last season.

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