The Hindu Business Line : Cardamom prices rule steady

At Kumily auctions on Wednesday, current bulk was sold at Rs 260 - 270 a kg. Around 450 kg of 8mm bold were sold at Rs 465. while 7mm at Rs 340 a kg, according to auction company sources. They said the entire quantity of 29 tonnes arrived was sold out.

Meanwhile, trading sources in Bodinayakannur said medium bulk was being sold at Rs 220-Rs 230 a kg, while floating good bulk at Rs 260-270 a kg.

During the current season, the total arrivals stood at 4,712 tonnes of which 4,377 tonnes of cardamom were sold. Arrivals were 5,054 tonnes and sales 4,676 tonnes. The weighted average price this year is Rs 303.67 as against Rs 362.80 a kg. Prices of graded varieties as on May 7 were AGEB Rs 375-385, AGB Rs 290 - 300, AGS Rs 270 - 275 and AGS 1 Rs 255 - 265 a kg.

Since the harvesting has come to an end, most of the arrivals are old stock, which has lost its original green colour, market sources pointed.

Though favourable weather conditions are prevailing in the growing areas in Kerala and Tamil Nadu, production in the 2004-05-season would remain at last season's level of around 11,500 tonne, Mr Ashok Kumar, President, Kerala Cardamom Growers Union, told Business Line on Friday.

The average yield per hectare in 2003-04, according to the Spices Board, was around 286 a kg in Kerala and 259 kg and 85 kg in Tamil Nadu and Karnataka respectively.

The total area under the crop spread over Kerala, Tamil Nadu and Karnataka was 73,237 hectares in 2003-04 and the total production was 11,580 tonnes with an average yield of 210 kg a hectare.

Mr Ashok Kumar said the cost of production had gone up substantially and to produce one kg of good cardamom, a farmer had to spend at least Rs 300.

According to him one grower in Anavilasam, Kumily, Mr G.G. Manoharan, got a yield of 1,000 kg from "Jnallani" variety. The investments to get that yield were comparatively higher.

However, with adequate irrigation and good farm management practices one could get a yield of 400 kg from an acre.

The total cost for raising one acre of cardamom plantation at present comes to Rs 90,000, excluding capital investments and interest on cultivation expenses, he said.

According to him some of the auctioneers were not holding auctions citing poor arrivals. There are enough arrivals to hold the auctions throughout the year, but the auctioneers for settling their accounts are suspending the auctions for about six weeks every year, he alleged.

Auction on Friday at Bodinayakannur has been suspended "due to poor arrivals" and on similar grounds the last auction at Nedumkandam was also suspended.

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