The Hindu Business Line : Cardamom prices drop on weak demand

The buyers were inactive probably due to lack of confidence in the future of the commodity. Most of the dealers are holding stocks according to their capacity, while reselling did not seem to have taken place as anticipated.

The prices dropped by Rs 10-15 a kg compared to the previous week. At the auction on Wednesday conducted by the Cardamom Processing and Marketing Company (CPMC), 47.5 tonnes of the commodity arrived and almost the entire quantity was sold out. The maximum price was Rs 496 a kg and minimum Rs 191.

The price for 8mm bold with good colour was between Rs 450 - 475 a kg while 7.5mm and 7mm was sold at Rs 425 - 450 and around Rs 400 a kg respectively. The average price was at Rs 369 a kg.

Exporters were absent probably because of the high prices and the decline in the colour of the capsules, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

Meanwhile, market sources in Bodinayakannur said that having incurred heavy losses a major buyer has withdrawn from the market while other traders are not happy with the high fluctuation in the prices.

The total arrivals during the current season up to May 8 stood at 7,608 tonnes compared to 8,792 tonnes in the corresponding season last year. Sales also dropped during the current season to 6,986 tonnes from 8,205 tonnes in the previous season. The weighted average price, as a result, increased to Rs 310.69 a kg from Rs 215.34 a kg.

Prices of graded varieties as on May 8 were AGEB Rs 455 - Rs 465, AGB Rs 380 - Rs 390, AGS Rs 360- Rs 375 and AGS 1 Rs 330 - Rs 340 a kg. Prices for these varieties in the open market at Bodinayakannur on Wednesday were AGEB Rs 450 - Rs 460, AGB Rs 380 - Rs 390, AGS Rs 360 - Rs 370 and AGS 1 Rs 330 - Rs 340. Bulk was fetching Rs 350- Rs 420 a kg.

The weather conditions continued to remain unfavourable as the summer showers have so far been deficient. As a result, revival of the plants dried up during the long dry spell from November last to April might turn out to be difficult and that in turn could affect the next crop negatively, some of the planters said.