The Hindu Business Line : Upward swing continues in cardamom

Farmers happy
There could be a tight supply position this season given the prevailing drought conditions in the cardamom growing tracts.
The dealers in up-country z

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Kochi Jan. 26 Cardamom prices continued their upward swing at the auctions held in Kerala and Tamil Nadu during the week-ended Thursday on good buying support from north Indian dealers.

They are active probably anticipating that there could be a tight supply position this season given the prevailing drought conditions in the cardamom growing tracts and a consequent decline in output, said Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC).

Cardamom Prices

There had been no showers since mid-November and as a result there was going to be a significant fall in the current and late crop, he said. Besides, if it continues, the next crop would also be delayed, he added. On the other hand, potential for imports from Guatemala does not seem to be encouraging. Given this scenario the dealers in up-country markets are buying now to beef up their inventories, he said.

The market sentiment was that the upward swing might continue for some more time, he claimed.

"In fact, for the first time after a long time smiling faces of farmers were seen," he said. The prices have gone up by around Rs 50 a kg during the week at auctions held at various centres in Kerala and Bodinayakannur.

The individual average price at the Wednesday's auction at Kumily by the CPMC shot up to Rs 347 a kg, while at Nedukandam on Tuesday of the Header Systems it was at Rs 319 a kg.

Graded Varieties

The 8 mm bold good colour fetched over Rs 500 a kg at Kumily auction.

The 7.5 mm and 7 mm capsules were sold at Rs 450-480 and Rs 375-400 a kg respectively. Good current bulk fetched Rs 350 a kg. Export buying stood at nine tonne, he said.

During the current season, the arrivals stood at 4,946 tonnes. Of this, 4,551 tonnes were sold. As against this, the total arrivals during the year-ago period last season were 6,099 tonnes and sales 5,708 tonnes. The weighted average price as on January 23, 2007, stood at Rs 295.34 a kg compared with Rs 223.42 a kg on the same day in 2006.

The prices of the graded varieties as on January 20 were: AGEB Rs 415-425, AGB Rs 330-340, AGS Rs 310-320 and AGS 1 Rs 275-285 a kg. The ruling prices for these grades at the local market in Bodinayakannur on Thursday were AGEB Rs 400-410, AGB Rs 310-325, AGS Rs 300-310 and AGS 1 Rs 260-270. Current bulk was fetching Rs 350-400 a kg.

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