The Hindu Business Line : Cardamom prices zoom on low arrivals

The average price was up by Rs 70 a kg to Rs 299 a kg. The 8 mm capsules fetched Rs 450 - 460 a kg, while 7 mm (fast colour) was sold at Rs 350 - 355 and current bulk at Rs 300 - 310 a kg.

Despite the suspension of auction for about three weeks, the arrivals on Wednesday stood at only 40 tonnes, Mr P.C. Punnoose, General Manager of the Kumily-based Cardamom Processing and Marketing Company that held the auctions, told Business Line on Thursday. He said 72 dealers participated in the trading.

Officially, the harvesting season begins from August 1 and hence, the auction held in Kumily would be the first one for the current season.

Exporters were also active and bought some quantity. Enquiries have also started coming in from some of the overseas markets, export sources said.

The drop in arrivals indicates a decline in output. However, during the absence of auctions, the smallholders could have sold in the open market and thus an estimated 50 tonnes per week must have gone into the open market through direct sales.

Production to drop

According to planters, the production is expected to drop by around 30 per cent this year.

Their sentiments are, therefore, high because of short supply, on the one hand, and poor carry forward stocks with dealers in north Indian markets on the other, they said.

Most of the growers have either given up or reduced farm management practices so far this year for want of funds as the prices were ruling far below remunerative levels last year.

Besides, the hike in input costs of late had also negatively affected the management of the plantations, the growers association sources pointed out.

The weather conditions continue to be unfavourable so far and it would have an adverse impact on the crop, prospects of which solely depended on the vagaries of the weather, they said.