The Hindu Business Line : Cardamom trade hit by Delhi sealing

Cardamon trade has been affected by the sealing of unauthorised business establishments and traders' agitation against it in Delhi. Movement of consignments to Delhi is said to have been reduced to a trickle currently.

Delhi is the major market for small cardamom.

The dealers in the Capital buy large quantity from the auctions held in Kerala and Tamil Nadu and stock it for distribution to retailers in the city and other markets in the neighbouring States.

This aromatic spice also goes to Pakistan through border trade from Delhi, trading sources in Bodinayakannur and Kumily told Business Line.

Most of the consignments are transported from Bodinayakannur, the main trading centre of the commodity. An estimated 50 per cent of buying by domestic traders at auctions in these two States is normally for the dealers in the Capital, they said.

Ever since the sealing controversy broke out, buying has been restricted at the auctions, as the buyers do not seem to be interested in stocking. Since, the issue has taken a serious turn, reselling has virtually stopped in the major market, the sources said.

Average price

As a result of this, the prices have dropped by Rs 50 per kg in one week. The average price during this period fell to Rs 275 from Rs 329.31 per kg during the current season as on November 7.

Despite the sharp fall in arrivals and sales during the current season, the prices of late started dropping, trading sources said.

The arrivals as on November 7 stood at 2,457 tonnes as against 3,246 tonnes in the same period last year while the sales fell to 2,178 tonnes from 3,029 tonnes. The weighted average price also increased to Rs 329.31 from Rs 232.12 per kg.

Price chart

The prices of graded varieties as on November 7 were AGEB Rs 390-400, AGB Rs 285-295, AGS Rs 270-280 and AGS 1 Rs 230-240. The local prices in Bodinayakannur on Thursday were AGEB Rs 380-390, AGB Rs 270-280, Rs 260-270 and Rs 220-230 a kg. Bulk was being sold at Rs 280-320 per kg.

At the auction on Wednesday in Kumily, 66 tonnes of cardamom arrived and almost the entire quantity was sold, but at low prices. The maximum price was Rs 435 per kg while the minimum was Rs 170 per kg.

No export buying

There was no export buying. In fact, the major exporters have been inactive at the auctions for the past one month, Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC), Kumily, said. Import restrictions by the Japanese authorities have also affected the exports to that country, he said.

According to him, sales during the last festival season were not to the levels anticipated due to the existence of carry forward stocks with the dealers and as a result the demand had not picked up as expected.

On the other hand, there is a sentiment in the market, that there would be regular flow of the produce into the market in the coming months because of the favourable weather conditions prevailing in the growing areas in Kerala and Tamil Nadu for the past few weeks, Mr Punnoose said, adding that this had also contributed to the present restricted buying leading to the price fall.