The Hindu Business Line : Diwali demand boosts cardamom

Traders from North India were active in the market indicating that there is good domestic demand as Dasara and Diwali draw near, market sources in Kumily and Bodinayakannur told Business Line.

On an average, 200 tonnes of cardamom was being sold a week at present and the volume sold wasmore than what was bought regularly at the auctions, they said.

Most of the arrivals comprised good quality capsules and hence bulk is sold at Rs 230 to Rs 250, while that of extra fancy capsules fetched Rs 280 a kg. Meanwhile, 7mm bold is sold at Rs 300 a kg. Medium varieties (6.5mm and below) are sold at Rs 180-190 a kg at Bodinayakannur.

The demand for Diwali would continue till October 15, they said.

Export buying has also started picking up. At the auction in Kumily on Wednesday, four tonnes of cardamom were bought by exporters. This was likely to move up once the Ramadan season drew near, they said. The competitive price and the availability well before the festival had placed Indian cardamom at an advantageous position, they said.The entire quantity of 53.75 tonnes that arrived at the Kumily auction was sold out. Bulk was sold at Rs 260-275 a kg. 7mm bold fetched Rs 310-325 a kg while 8mm bold was sold at Rs 484 a kg.

According to Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company, Kumily, the current trend in demand would continue for some time. Export demand was also expected to pick up next month, he said.

The total arrivals as on September 21 stood at 1,553 tonnes as against 611 tonnes in the same period last year. Of these, sales stood at 1,468 tonnes and 575 tonnes, respectively. The weighted average price this season was Rs 238.36 a kg compared to Rs 334.83 a kg last season.

The prices of graded varieties as on September 17 were AGEB Rs 350-360, AGB Rs 245-250, AGS Rs 235-245 and AGS 1 Rs 215-220 a kg.

Favourable weather conditions all through the season would lead to a better crop this year than the last season, trading sources pointed out. Given the good yield per acre during the current season, the prevailing prices might become remunerative, they said.

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E.B. Sethna is Upasi President