The Hindu Business Line : Cardamom prices drop on weak demand

CARDAMOM PRICES slipped on weak demand at auctions held in Kerala and Tamil Nadu during the week. While the arrivals continued to flood the market, corresponding demand was lacking. Exporters were not active at auctions held during the week. However, domestic buyers were active but traded cautiously. This pushed the prices down by Rs 10-15 a kg.

Since the festival season in major West Asian markets had come to an end, there did not seem to be any orders, market sources in Bodinayakannur and Kumily told Business Line on Thursday.

Meanwhile, the severe cold prevailing in North India, coupled with the end of the festival and marriage season there, had weakened the demand, said Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC).

According to him, 60 tonnes of cardamom that arrived at the CPMC auction at Kumily on Wednesday were sold, but at a lower price. The maximum price quoted was Rs 387 a kg for 8mm bold. The current bulk fetched Rs 200-210, and the sick varieties Rs 165-180 a kg. The medium varieties were sold at Rs 180-190 a kg. The prices were Rs 10-15 less than that of December 2005.

He said exporters who were active from November to the first week of January were absent at the auctions held during the week.

The total arrivals during the current season up to January 18 stood at 5,991 tonnes as against 3,291 tonnes in the same period last season. This season at 5,611 tonnes have been sole compared with 3,072 tonnes last season. The average price remained at Rs 224.02 a kg (Rs 304.34).

Prices of graded varieties as on January 14 were AGEB Rs 295-305, AGB Rs 210-220, AGS Rs 195-205 and AGS 1 Rs 170-185 a kg.

Local prices in Bodinayakannur on Thursday were AGEB Rs 290-300, AGB Rs 210-220, AGS Rs 200-210 and AGS 1 Rs 175-185. Running bulk was sold at Rs 200-240 a kg.

Arrivals might shrink in the coming weeks following the declining trend in the prices. Add to this, the dry weather prevailing in the growing areas might motivate the major growers to hold back the produce till the prices moved up, the sources said.