The Hindu Business Line : Cardamom steady on buying support

They attributed the continuing dry spell in the cardamom growing areas to the drop in the arrivals. Harvesting also is in the final rounds because of this situation. Besides, the current climatic conditions could not only delay the next crop, but also push down the output from that of the current season.

Given this impending scenario the major growers are said to be holding back their produce for releasing in the beginning of the next season when the prices are expected to be much on the higher levels, they said.

Compared to last week the arrivals at various auctions held this week showed a decline, Mr P.C. Punnoose, Managing Director, Cardamom Processing and Marketing Company (CPMC), Kumily said.

According to him, the prices ruled steady at the CPMC auction on Wednesday. 8mm bold was sold at Rs 425 - 450 a kg while 7.5mm and 7mm fetched Rs 390 - 420 and Rs 350 - 375 a kg, respectively. Current bulk was sold at Rs 325 - 340.

He said the export buying had been thin. However, exporters bought 5 tonnes of cardamom on Wednesday. They are probably waiting for the second round of orders from overseas, he said.

Meanwhile, trading sources in Bodinayakannur attributed the slow export buying to higher prices prevailing now.

Total arrivals

During the current season, the total arrivals stood at 6,298 tonnes against 7,256 tonnes in the corresponding period a year ago, while sales were at 5,787 tonnes against 6,779 tonnes. The weighted average price this season remained at Rs 302.60 a kg compared with Rs 220 a kg last season.

The prices of the graded varieties as on March 3 were AGEB Rs 430 - 440, AGB Rs 350 - 360, AGS Rs 335-345 and AGS 1 Rs 300 - 310 a kg. The local market prices at Bodinayakannur on Thursday were AGEB Rs 420 - 430, AGB Rs 340 - 350, AGS Rs 325 - 335 and AGS 1 Rs 290 - 300. Bulk was fetching Rs 300 - 350 a kg.

Though the farmers are happy over the prevailing remunerative prices, the prevailing drought conditions have become a matter of concern as in several areas mainly those having no irrigation facilities the plants have started drying up. They are waiting for rain, they added.