The Hindu Business Line : Thin arrivals prop up cardamom prices

The season’s first cardamom auction was held in Kumily on Wednesday jointly by two auctioneers Cardamom Processing and Marketing Company (CPMC) and Kerala Cardamom Processing and Marketing Cooperative Society (KCPMC).

The arrivals at the auction were thin. As against 58 tonnes of the commodity that arrived at the first auction of last season, it was a meagre 25 tonnes on Wednesday, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

Only 25 per cent of the arrivals consisted of the new crop he said, attributing the drop to the poor crop due to protracted drought this year followed by strong winds accompanied by heavy rains which had damaged plants in many estates. Hence, 75 per cent of the capsules arrived were from the carryover stock held by the growers, he added.

The arrival of 8 mm super colour capsules was limited at 47 kg and it fetched the maximum price of Rs 560 a kg, while 8 mm bold was sold at Rs 500-525 a kg. The 7.5 mm and 7 mm cardamom fetched Rs 450-475 and Rs 375-400 respectively. Bulk was sold at Rs 350-360 a kg. Average price was at Rs 401 a kg against Rs 200 a kg at the first auction the last season. Compared to the price at the last auction of the previous season on May 30 the prices showed an increase of Rs 40-45 a kg, he said.

All the traders participated actively and bought though the quantity was less.

Guatemala yield

Meanwhile, he said, the yield per acre in Guatemala, the major competitor of India in the world cardamom market, was much less and almost half of the Indian yield but the cost of production there is very less. In that country, cardamom is mainly cultivated in fertile forest land, which does not require fertiliser applications.

Exporters buy green capsules from the farmers and they do the drying and processing of the commodity. Therefore, they could afford to offer at almost half of the Indian price, he said. This was discussed at a seminar held recently in Kumily by an official delegation which visited Guatemala in November/December last.

On launching of e-auction in cardamom, the sources said, a couple of mock e-auctions would be held in the coming weeks to educate the participants on the new system. Thereafter, it would be formally launched some time in end-August or early September after the Onam festival, they added.