The Hindu Business Line : Cardamom prices begin to improve

If the initial trends are any indication, cardamom prices may move upward in the coming days of the current season, which officially began on August 1.

The weighted average price as on August 16 showed an increase of about Rs 40 a kg to Rs 281.12 a kg from Rs 240.42 a kg during the same time a year ago. Total arrivals at auctions during August 1-16 stood at 228 tonnes against 290 tonnes in the corresponding period last season. Sales during the period stood at 217.6 tonnes compared with 279 tonnes.

Prices of graded varieties as on August 12 were: AGEB Rs 365-Rs 375, AGB Rs 290 - Rs 300, AGS Rs 265 - Rs 275 and AGS 1 Rs 235 - Rs 245 a kg. Open market prices at Bodinayakannur on Thursday were AGEB Rs 340 - Rs 350, AGB Rs 250 - Rs 260, AGS Rs 230 - Rs 240 and AGS 1 Rs 210 - Rs 220 a kg.

Domestic Demand

There is a good domestic demand now. The ensuing festival season coupled with reports of a possible decline in the production this year by 30 - 35 per cent has pushed up the prices, market sources in Bodinayakannur told Business Line.

Meanwhile, traders in Kumily said inventories in north Indian markets have almost exhausted and hence, they were seen active at the recent auctions.

At the Cardamom Processing and Marketing Company (CPMC) auction at Kumily on Wednesday, arrivals stood at 59 tonnes and almost the entire quantity was sold out. The average price was Rs 299 a kg. The maximum price (for 8-mm bold) was Rs 468 a kg and minimum Rs 118 a kg. Seven-mm with fast colour fetched Rs 345 to Rs 355, while the current bulk was sold at Rs 275-Rs 280 a kg.

Higher prices

The general sentiment in the market is prices might move up in the coming days, Mr P.C.Punnoose, General Manager, CPMC said.

There appears to be no-carry over stock with the dealers, which means that last year's entire production has been absorbed by the domestic market. Opening of new retail outlets in the country coupled with increased border trade with Pakistan is said to have contributed to the increase in domestic demand, trade sources pointed out.

Heavy winds and dry spell in June and July have damaged plants in certain growing areas and as a result the output is likely to be lower during the current season, planters said. Besides, high input costs and low prices in the previous season had forced many growers to cut down the application of fertilisers and pesticides while some were compelled to give up farm management practices.