The Hindu Business Line : Heavy arrivals keep cardamom prices at lower levels

As the harvesting began early in late June, total arrivals as on September 7 stood at 1,071 tonnes against 320 tonnes during the same period a year ago. The weighted average price remained at Rs 239.60 a kg compared with Rs 363.71 in the same period last season.

Traders were active in buying large quantities, as evident from the sales at various auctions in Kerala and Tamil Nadu, which began on July 7, due to increased availability of good quality cardamom at low prices. Exporters were also buying as the prices are competitive.

All the coloured varieties fetched Rs 10 more at the auctions at Kumily on Wednesday from that of the previous auction, while others were down by Rs 5 a kg, Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company, a major auctioneer and exporter, told Business Line. He said there was 700 kg of 8 mm bold which fetched Rs 450 a kg. While 7 mm was sold at Rs 340 - 350 and good bulk at Rs 280 - 290 a kg. Exporters bought around eight tonnes of cardamom on Wednesday, he said.

According to Mr Punnoose, the North Indian traders were buying for the ensuing festival season such as Dasara and Diwali, while the exporters to meet the Ramzan demand in the Gulf countries.

The demand from the Gulf markets was expected to go up this year, as sufficient quantity of Indian cardamom would be available at attractive prices, market sources in Bodinayakannur said. They said that competition from Guatemala in the Gulf markets, the major consumer of this aromatic spice would be unlikely as Ramzan would be over before the cardamom harvest begins there.

Given this situation, the exports this fiscal might touch 1,000 tonnes, they said.

The increase in demand has not made any impact on the prices, Mr T. Ashok Kumar, President, All Kerala Cardamom Growers Association, said. According to him, the heavy supply coupled with the insistence on cash and carry system by auctioneers had kept the prices at lower levels. However, given the increased productivity per hectare the current prices would help break even though it was not remunerative, he said.

There could be a short fall in supply after December as almost 50 per cent of the yield per plant has been harvested, he claimed. The favourable weather conditions in the growing areas would lead to a good crop this year and it could be above 11,000 tonnes, he said. The average prices of graded varieties as on September 3 were AGEB Rs 330 - 340 a kg; AGB Rs 225235; AGS Rs 220-225; and AGS 1 Rs 210-215.

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