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G.K. Nair

Kochi , Oct. 6

DIWALI demand activated the cardamom market during the week with prices ruling steady at auctions held in Kerala and Tamil Nadu.

Arrivals continued to be heavy but almost all the quantity was sold out. At the Cardamom Marketing and Processing Company (CPMC) auction in Kumily on Wednesday, the entire quantity of 80 tonnes that arrived was sold out.

Prices for all grades were up by Rs 10 a kg and as a result, the average price increased to Rs 265 a kg, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

The arrival of 80 tonnes at the auction was the highest ever in the history of the auctioning company which started auctions in 1986. The 8 mm capsules with faded colour fetched Rs 475 a kg , while 7 mm was sold at Rs 285-300 a kg. Running bulk fetched Rs 255-265 a kg.Because of the good demand from North Indian markets, the prices ruled steady despite heavy arrivals, he said. Good crop with high productivity estimated at 300 kg to 400 kg an acre has led to the significant rise in arrivals. For the growers, given the increased yield per acre, the current prices were enough to make up, he pointed out.

He said the cash and carry system introduced by the auctioneers last year was functioning well and as a result, there wasn't much speculative or over trading. "The dealers do not have much problem now," he said.

Export buying at the Kumily auction stood at 15 tonnes.The demand for sick variety has been there from Japan, while the demand for bold green varieties from the major market Saudi Arabia was yet to pick up, he said.

According to market sources, weak demand so far from overseas despite the prevailing low prices gives the impression that exports this year may not touch last year's level. The overseas markets are reportedly holding carry forward stock of Guatemala cardamom. The current demand was from the selected markets where the consumers prefer superior grade Indian capsules, they said.

Prices of the graded varieties as on September 29 were AGEB Rs 350-360, AGB Rs 245-250, AGS Rs 235-245 and AGS 1 Rs 215-220 a kg.

The production this year, according to trading estimates, is estimated at 12,500 tonnes as against 11,500 tonnes last year, thanks to favourable weather conditions.

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