The Hindu Business Line : Cardamom declines

Spicy details
Total arrivals as on October 4 stood at 1,629 tonne as against 2,049 tonn
The sales were at 1,455 tonne (1,932 tonne). The weighted average price was Rs 349.26 a kg (Rs 234.47 a kg).

Kochi , Oct. 5

Downward trend continued in cardamom prices at auctions held in Kerala and Tamil Nadu during the week on weak demand.

There was no aggressive buying activity. It has almost become a buyers market. Exporters were buying only small quantity. Delhi dealers are said to be holding stocks of cardamom bought earlier and, hence, they have restricted buying, market sources in Bodinayakannur told Business Line. They might, however, re-enter the market once the stocks are exhausted, they claimed.

Current slide

Meanwhile, traders in Bodi and Kumily attributed the current slide in prices to the online trading where the prices have been quoted below Rs 500 a kg.

This has happened despite the fact that the arrivals so far have been far below the levels of the corresponding period last season. Besides, it is the time, the demand should pick up owing to the festival season. The current downward trend, according to Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC), Kumily, could be a "technical correction" and the prices are likely to stabilise at moderate levels.

Arrivals

The total arrivals as on October 4 stood at 1,629 tonnes as against 2,049 tonnes as on the same day last year. Similarly the sales were at 1,455 tonnes (1,932 tonnes). The weighted average price as on Wednesday was Rs 349.26 a kg (Rs 234.47 a kg).

Price range

Average prices of graded varieties as on September 30 were AGEB Rs 450 - 460; AGB Rs 350 - 360; AGS Rs 335 - 345 and AGS 1 Rs 290 - 300 a kg. The open market prices in Bodinayakannur on October 3 were AGEB Rs 430-440; AGB Rs 340 - 350; AGS Rs 325 - 330 and AGS 1 Rs 260 - 270 a kg. Bulk was being sold at Rs 320 - 370 a kg.

At the CPMC auction on Wednesday at Kumily, the entire quantity of 65 tonne of cardamom arrived were sold out. The arrivals at the corresponding auction last year were at around 90 tonnes, he said. The prices were down by Rs 25-30 a kg on October 4, Mr Punnoose said. The maximum price fetched was Rs 518 a kg for 8 mm bold and the minimum was Rs 175 a kg.

While 7.5 mm capsules were fetching Rs 400 - 425 a kg, 7 mm got Rs 325 - 350 a kg. Current bulk was sold at Rs 280 - 300 a kg, he said.

Export buying was "very limited" and it was at 7.4 tonnes at the Wednesday auction, he said. The average price dropped to Rs 333 a kg from Rs 405 a kg at the beginning of the auction for the current season, he said.

If the current rate of arrivals were any indication there is going to be a substantial decline in the total output this season, he added.

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