The Hindu Business Line : Cardamom up on buying support

The cardamom market showed an upward trend on buying support from both exporters and domestic dealers at the auctions held last week in Kerala and Tamil Nadu.

Indications are that the demand might pick up in the coming weeks due to certain fundamental factors. Harvesting has almost reached the fag end of the season and hence the arrivals are expected to shrink in the coming days.

Other major factors to which could be attributed the upward swing in both export and domestic buying, are the price parity between Indian cardamom and that of Guatemala, the world's top producer, and the superior quality of Indian capsules.

Add to this, not only is the aromatic spice of higher quality available here at competitive prices but there is also saving in freight and time for the importer.

Another advantage is timely delivery, facilitated by the proximity of the major markets, the Gulf countries. Given these positive factors, export demand for Indian cardamom could pick up.

"Good export buying, of late, has helped the price to stabilise," Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC), Kumily, the major auctioneer, processor and exporter, told Business Line. He said out of the total arrivals of 51 tonnes at the February 22 auction, exporters bought 15 tonnes and the remaining quantity was absorbed by North Indian dealers.

"The market was strong and for the past two weeks it was not showing any downward trend," he said. 8mm fast (green) colour fetched Rs 430 a kg while 7mm green Rs 310-325 a kg. Current bulk was sold at Rs 205-220 a kg while the sick variety at Rs 135-155 a kg, he said.

During the current season up to February 22, total arrivals stood at 6,932 tonnes as against 3,777 tonnes on the same date last year. Sales also soared to 6,483 tonnes compared to 3,498 tonnes.

The weighted average price during the current season was Rs 220.93 a kg as against Rs 305.68 a kg last season.

The prices of graded varieties as on February 18, were AGEB Rs 300-310 a kg, AGB Rs 215-220, AGS Rs 195-200 and AGS1 Rs 185-195 a kg.Local prices in Bodinayakannur on Thursday were AGEB Rs 290-300, AGB Rs 200-210, AGS Rs 190-200 and AGS1 Rs 170-180 a kg. Bulk was being sold at Rs 190-230 a kg.