The Hindu Business Line : Heavy arrivals drive down cardamom prices

CARDAMOM prices declined on heavy arrivals and incessant rains disrupting traffic and movement of consignments, thus raising concern over timely payment.

Arrivals at the auction conducted by the Cardamom Processing and Marketing Company (CPMC) at Kumily on Wednesday stood at 93 tonnes - the highest-ever in its 20-year history, according to Mr P.C. Punnoose, General Manager, CPMC.

"There is a selling pressure because of Diwali and there won't be any auctions next week," he said.

This would help the dealers to release the huge stocks held by them in the major trading centres such as Bodinayakannur in Tamil Nadu and Kumily in Kerala, he told Business Line.

Due to the selling pressure, prices dropped by Rs 10 a kg at the CPMC auction in Kumily on Wednesday, he said. The average price was Rs 245 a kg. The 8 mm bold variety fetched Rs 407 - 410 a kg, while 6.5-7.5 mm capsules were sold at Rs 265 - 285. Price of average bulk was Rs 235 - 245, while the sick variety was available at Rs 160 - 175 a kg. Exporters bought 12 tonnes, he said.

Meanwhile, market sources in Bodinayakannur said the dealers were facing problems in getting the bulk cardamom sieved and cleaned for want of adequate number of labourers as they were holding huge stocks.

Second, movement of consignments to markets in the other parts of the country has come to a standstill due to disruption in rail and road traffic following heavy rains in Tamil Nadu, Karnataka and other States.

Unless the consignments reached the dealers in the north Indian markets payments would not come and this, in turn, would result in liquidity problems, they said.

These factors might bring down the price in the coming days, they feared.

Total cardamom arrivals up to October 25 was 2,942 tonnes of which 2,751 tonnes were sold, while the arrivals and sales during the corresponding period last year were 1,585 tonnes and 1,498 tonnes respectively.

The weighted average price as on October 25 was Rs 233.93 a kg as against Rs 312.35 a kg during the same period last season.

Prices of graded varieties were: AGEB Rs 295 - 305; AGB Rs 220 - 230; AGS Rs 200 - 210 and AGS1 Rs 190 - 200 a kg.

Meanwhile, at the local market in Bodinayakannur prices were: AGEB Rs 290 - 300; AGB Rs 210 - 220; AGS Rs 190 - 200 and AGS1 Rs 185 - 190. Prices bulk were: Rs190-250 depending on the colour of the capsules.

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