The Hindu Business Line : Cardamom steady on buying support

Exporters as well as domestic dealers were active because of the prevailing low prices. For the exporters the advantage is that domestic prices were on a par with that of Guatemala. Besides, supply from other origins is not only delayed but also likely to be thin this year, trading sources told Business Line. These factors have encouraged the domestic dealers also to buy and stock, they said.

In fact, the sales during December stood at 1,140 tonnes against 964 tonnes in November 2005, which shows that almost the entire quantity arrived was absorbed by the market.

During the current season up to January 4, 2006 the arrivals at the auction centres stood at 5,549 tonnes against 3,099 tonnes in the same period last season.

The sales were at 5,214 tonnes in the current season compared with 2,907 tonnes in 2004-05.

The prices of graded varieties as on December 31 last, were AGEB Rs 300 - Rs 310, AGB Rs 215 - Rs 225, AGS Rs 200 - Rs 210 and AGS 1 Rs 175 - Rs 190 a kg.

Local prices in Bodinayakannur on Thursday were AGEB Rs 290 - 300, AGB Rs 200 - 210, AGS Rs190- 200 and AGS 1 Rs170 - 175 a kg. Bulk was being sold at Rs 200 - 240 a kg.

Exports during December 2005 are estimated at 125 tonnes. According to export sources from Bodinayakannur region alone 81 tonnes of cardamom were exported in December last.

The weather conditions continued to remain favourable in the growing regions. The picking has slowed down as the peak harvesting has almost come to an end.

Movement of cardamom consignments from Bodinayakannur has been good now after the disruptions in Tamil Nadu due to heavy rains in last month, market sources said.