The Hindu Business Line : Cardamom slips further on poor buying support

DOWNWARD trend continued in cardamom prices in Kerala and Tamil Nadu auctions during the week for want of buying support both from up-country dealers and exporters.

Contrary to expectations, the North Indian dealers were not active during the week while exporters stayed away claiming that there was no demand from overseas markets, trading sources in Kerala and Tamil Nadu said.

Meanwhile, there has been a substantial drop in arrivals as the harvesting has reached its final stages. The harvesting might come to an end earlier than expected as the growing areas are now under the grip of a dry spell. There have not been any showers for the past many weeks, trading sources said. In fact, harvesting is taking place mainly in plantations in the Vandanmedu region, where good irrigation facilities exist.

Export sources said that there had not been any demand in recent weeks from the major overseas markets, mainly Saudi Arabia, which is said to have received Guatemala cardamom at low prices.

Despite the airfreight assistance of Rs 45 announced by the Spices Board from October 16, the exports failed to pick up to the anticipated levels, market sources in Bodinayakannur told Business Line. The total exports during April-December 2004 stood at only 375 tonnes as against 490 tonnes in the corresponding period last year.

On the other hand, they said, the upcountry dealers appear to be liquidating their stock and were not active in buying. Besides, there are rumours that Guatemala cardamom has arrived in North Indian markets.

As a result, despite a drop in supply, the prices continued to decline by Rs 20-30 a kg. The average prices recorded at auctions during the week in Kerala were between Rs 312.15 and Rs 334.97 a kg while at Bodi auctions it was Rs 287 and Rs 294.99 a kg. The highest arrival was at MAS auction at Vandanmedu on January 21, with 42 tonnes and a sale of 41 tonnes while at the Kumily auction on Wednesday it was 23 tonnes of which 18 tonnes were sold.

The total arrivals during the current season up to January 26 stood at 3,433 tonnes and of this 3,189 tonnes were sold. The weighted average price was Rs 304.89 a kg. During the corresponding period last year of the arrivals of 3,455 tonne, about 3,163 tonnes were sold. The average price stood at Rs 376.32 a kg.

Prices of the graded varieties were AGEB Rs 425-435, AGB Rs 330-335, AGS Rs 315-320 and AGS 1 Rs 280-290 a kg. Bulk cardamom was fetching Rs 290-330 a kg depending on the areas.

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